Vehicle Excise Duty (VED) rates, also known as road tax or car tax are increasing in April 2020. If your considering upgrading or buying a new car, now could be the perfect time to do so - saving you up to £755!
Vehicle Excise Duty (VED) is a type of annual road tax. The amount you are required to pay depends on a range of factors such as your vehicle engines size, fuel type and amount of CO2 emissions it generates (when first registered) and from 1st April 2020 it's all changing. This is due to a more accurate way of testing vehicle CO2 emissions, called the Worldwide Harmonised Light Vehicles Test Procedure (WLTP).
As a result, this could mean an increase in road tax for you new car after April 1st 2020 - Contact us to find out how it will impact you.
WLTP is a new method of giving a more accurate and realistic evaluation of the fuel consumption (mpg), driving range and CO2 emissions (g/km) of vehicles. This will be the new way, effective from April 1st, to calculate car tax bands and the VED rate at which certain vehicles will be charged.
As a result of this new method, many vehicles’ CO2 emissions will change and you could face a higher road tax cost when you buy a new vehicle after April 1st.
The main road tax changes and conclusions from the new method include the following:
- WLTP calculations do not match NEDC values
- On average, WLTP results reported CO2 emissions at around 20-25% higher than the previous NEDC method
- Diesel vehicles are affected slightly more than their petrol counterparts
- Vehicles with smaller engines (and lower emissions) had above-average increases in values reported by the WLTP method. Cars with higher CO2 emissions, on the other hand, are reportedly not as greatly impacted
The change will only impact your first VED payment when you buy and register a new vehicle after the 1st of April 2020. Your existing vehicle will not be affected, but you will probably pay more in car tax if you buy a new vehicle after the 1st of April.
Information taken from Compare UK Quotes