DVLA warns drivers to pay tax before new system comes into effect

Drivers were told they could end up paying more if they didn’t renew their car tax before the new tax system came into effect.

The DVLA issued a reminder via Twitter and Facebook ahead of the changes which will come into effect in a few weeks.

The car tax is expected to rise in April, with the vehicle excise duty (VED) expected to match inflation levels.

This comes as the cost of living increases.

According to Expressvehicle excise duty (VED) is set to rise in line with inflation, and owners of petrol or diesel vehicles will be hit with higher taxes to match the UK government’s Net Zero target.

The DVLA’s messages read: “Untaxed vehicles are hard to hide, easy to tax.

“Remember to always tax your vehicle on time.”

The social media posts were followed by the hashtags: “Tax it, don’t risk it” and “Tax it or lose it.”

Drivers can tax their car, motorbike or other vehicles online via the DVLA website using a Vehicle Log Book (V5C) reference number, a car’s green ‘new custodian’ slip new.

People who have received a recent recall (V11) or “last chance” warning letter from the DVLA can also use the reference number provided.

Motorists must tax their vehicles even if they have nothing to pay, including those benefiting from exemptions.

The DVLA is also urging drivers to ensure they meet all legal obligations before taxing their vehicles and using the roads.

This includes having the correct license, meeting minimum vision rules and having their vehicle registered, taxed and with a current MOT certificate.

In April, Vehicle Excise Duty (VED) is expected to increase in line with inflation and will increase the cost of owning a gasoline or diesel vehicle.

While inflation hit 5.5% in January, experts predict it could hit 8% by April.

The amount of VED, or car tax, a driver pays will depend on how old the car is and how environmentally friendly it is.

Electric vehicles will continue to pay nothing in VED in the first year, while all other car tax brackets will increase.

Certain other cars are exempt from paying vehicle tax, including classic vehicles over 40 years old as well as disabled drivers.

Vehicles producing more than 255g of CO2 emissions will see their first year rate cut from £2,245 to £2,365.

Those whose vehicles produce very low emissions will see no change or a very small increase in costs.

The smallest increase is for vehicles that release between 76 and 90g of CO2, where drivers will see a rate of £120 in the first year, up from £115.

The rates for benefits in kind (BiK) are also expected to increase by 1% from April 2022.

As a result, electric cars and other vehicles producing less than 50g of CO2 per kilometer will now pay 2% BiK instead of 1%.

All other vehicles will pay 1% more, regardless of their CO2 level.

An exception is for vehicles that produce more than 156g per km, with BiK rates remaining at 37%.

It comes amid the cost of living crisis with inflation at its highest level in nearly 30 years as energy bills and taxes rise.

The average gas and electricity bill in the UK is expected to rise to a maximum of £1,971, an increase of £693 a year, said Ofgem, the energy sector regulator.

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