Car tax changes 2018 - How they affect you and how much more will it cost
JUST one year after the revised vehicle excise duty (VED) rates were introduced newly revised fees for diesel drivers were introduced adding up to £500 more onto the annual bill.
Philip Hammond outlines new diesel tax plans
New car tax rates were introduced in April 2018.
They were as a result of an announcement in the Autumn Budget 2017 by Chancellor Philip Hammond.
The Chancellor announced that first year rates for diesel car owners were set to be increasing.
It was introduced to combat the amount of highly polluting cars on the road in the UK and potentially improve air quality.
Diesel cars will have to meet the real-world driving emissions standards, which means that they can emit no more than 120mg of nitrogen oxides per kilometre.
This is problematic due to the fact that it is 1.5-times the current limit of 80mg/km, which means that no new car can currently meet these standards.
Compliance with these emissions standards is not mandatory from manufacturers until 2020.
The changes could see some driver pay up to £500 more to tax their car in the first year than if it was registered before April 1st, 2018.
Only cars registered after this date will face paying the higher rates of vehicle excise duty.
Essentially, the driver will pay one band higher car tax than they would have done before that date.
Here are new car tax bands as of April 2017 compared to the new rates set to be introduced as of April 2018 for diesel drivers:
1 - 50 g/km CO2
CURRENT RATE:£10
FROM APRIL 2018: £25
51 - 75 g/km CO2
CURRENT RATE: £25
FROM APRIL 2018: £100
76 - 90 g/km CO2
CURRENT RATE: £100
FROM APRIL 2018: £120
91 - 100 g/km CO2
CURRENT RATE: £120
FROM APRIL 2018: £140
101 - 110 g/km CO2
CURRENT RATE: £140
FROM APRIL 2018: £160
111 - 130 g/km CO2
CURRENT RATE: £160
FROM APRIL 2018: £200
131 - 150 g/km CO2
CURRENT RATE: £200
FROM APRIL 2018: £500
151 - 170 g/km CO2
CURRENT RATE:£500
FROM APRIL 2018: £800
171 - 190 g/km CO2
CURRENT RATE: £800
FROM APRIL 2018: £1,200
191 - 225 g/km CO2
CURRENT RATE: £1,200
FROM APRIL 2018:£1,700
226 - 255 g/km CO2
CURRENT RATE: £1,700
FROM 2018:£2,000
Over 255 g/km CO2
CURRENT RATE: £2,000
In April 2017, the cost of car tax in the first year increased significantly for thousands of drivers.
Authorities wanted to put pressure on UK motorists to make the switch to cleaner, lower emissions cars so increased the price of car tax in the first year across the board.
Only cars that produce zero emissions and cost less than £40,000 can dodge paying car tax, under the new rules announced last year.
Any car that costs £40,000 or more has to pay for a luxury car surcharge of £310 for the first five years.
A car that produced 120g/km C02 emissions pre-April 1st 2017 paid just £30 for car tax, while a car registered after that date pays £160.
Vehicle Excise Duty price increases explained:
How tax for petrol and diesel cars compare before and after April 1st, 2017
Pre- April 1st, 2017
120g/km - £30
150g/km - £145
170g/km - £210
Over 255g/km - £515
Post-April 1st 2017
120g/km - £160
150g/km - £200
170g/km - £500
Over 255g/km - £2,000
In addition to the inflated first-year fees, a set of standardised second and subsequent year rates came into force.
These standard rate charges will vary for drivers depending on what type of car they are and what fuel they use:
-£140 per year for petrol and diesel vehicles
-£130 per year for ‘alternative fuel’ vehicles, such as hybrids
-£0 per year for zero-emissions vehicles, such as fully electric