UK Car Overview

Running a car in the UK involves a number of different annual costs, the main one of which is tax.  Car tax, also known as Vehicle Excise Duty, was introduced in 1937 and is a legal requirement for all vehicle owners, regulated by the DVLA (Driver and Vehicle Licensing Agency).

How much tax you pay depends on the vehicle you are driving and, this is calculated by the size of the engine (under 1549cc and over 1549cc) for vehicles registered before 1st March 2001.  For newer vehicles, this becomes a little more complicated due to new legislation on CO2 emissions which states that less tax is paid on energy efficient vehicles such as hybrids and those running on LPG.  See the UK Government site for a guide to the different charges HERE.

UK car tax was, in the past, monitored by users being required to display a paper disc on the windscreen of the car, however, these days, police and DVLA authorities use Automatic Number Plate Recognition (ANPR) camera technology in order to monitor vehicles.

How do I tax my vehicle?

UK car tax usually runs for a period of 12 months starting from the day that you take ownership of the vehicle and, can be purchased or renewed either online, by telephone or by visiting a good old fashioned Post Office (you may need to check that your local Post Office offers this service).  To renew your road tax online, visit https://www.gov.uk/vehicle-tax

Running a car without tax is an offence – and one which is subject to hefty fines.  If you’re late in making payment on your tax, you’ll receive a reminder and an automatic £80 fine which may be reduced to £40 with immediate payment.  If you continue to evade payment of car tax, you may be taken to court and issued with a fine of up to £1000 (rising to £2500 if the car is used or stored on a public road).  

For more information on government tax regulations, or to calculate the tax on your vehicle visit https://www.gov.uk/calculate-vehicle-tax-rates