How do I pay for car road tax (VED)?
Taxing your car used to involve a trip to the Post Office and you can still go there with your V11 reminder letter, registration document, new keeper supplement or your last chance warning letter.
If you go in person then you should take with you:
- Valid MOT certificate (if required)
- Reduced pollution certificate (if appropriate)
- Insurance Cover Note (Northern Ireland only)
You can, however, just tax your car online and arrange a monthly direct debit that effectively spreads the cost of your payments. You can do it within minutes and it’s a more convenient solution.
How will Car Road Tax (VED) change in 2017?
The system will undergo a complete change and the rules will be much simpler. Zero emissions cars will pay nothing at all. Other cars will pay a one-off charge for the first year and then move to a flat rate of £140. If your car emits more than 255g/km of CO2, you will have to pay a £2,000 fee for the first year’s car road tax (VED).
The rule changes don’t stop there, as any car that costs over £40,000, including Zero Emissions cars will incur an additional charge of £310 a year from the second year onwards.
This is designed to simplify the whole system, but it also ensnares hybrids in the flat rate and certainly goes a long way towards safeguarding the tax revenue.
Factor in the running costs
Along with car insurance, car road tax (VED) is just one part of the running costs that you really have to consider when you go looking for a new car. It’s closely related to the fuel economy in many cases, but you should really do the sums as the VED has a profound impact on the annual running costs of any car and if you don’t factor it in to your maths before you buy your next car.