Find out why Vehicle Road Tax (VED) is changing for new vehicles registered on or after 1st April 2020, and what you can do to avoid paying more for your car.
The 1st of April will see the introduction of a new official way of testing the emissions, range and fuel consumption of all new vehicles. The government estimates that most cars will experience a 20% increase in official CO2 emissions ratings, meaning a road tax increase is likely to occur for new purchases.
Why is VED changing?
As always, the amount we pay depends on factors such as engine size, fuel type and the amount of CO2 emissions generated by the vehicle at its time of registration.
Previously, these were measured through the New European Driving Cycle test (NEDC), first developed in the 90s and most recently updated in 1997. But following the ever-evolving leap in technology, this testing has now become outdated and no longer represents today’s vehicles.
Designed to better reflect real driving conditions, the new measuring process - The Worldwide Harmonised Light Vehicles Test Procedure (WLTP) - will provide a more accurate measure of vehicle emissions and fuel economy.
How will this affect your road tax?
Because the new testing procedure is more rigorous, and able to determine a much more accurate evaluation of a vehicle’s fuel consumption, driving range and CO2 emisisons, the results are more realistic and the output will change.
Placing vehicles in a higher tax band to their current ones, the new test will result in an increase in road tax on cars purchased after 1st April 2020 for Vehicle Excise Duty and 6th April 2020 for Benefit-in-Kind on Company Car Tax.
How can I beat the tax increase?
The road tax increase will only affect the initial purchase price of a car. In the years to come, petrol and diesel vehicles will cost £145, hybrids will be £135 and fully electric cars will be £0. New cars priced above £40,000 will be subject to an extra £320 charge for 5 years, from the second time the vehicle is taxed.
Purchasing a new car before the April 2020 road tax increases could save money on the first year of Vehicle Excise Duty. Check out the table below for all VED price increases per CO2 emissions banding.
|CO2/VED bands||Diesel cars (TC49) that meet the RDE2 standard and petrol cars (TC48)||All other diesel cars (TC49)||Alternative Fuel Cars (TC59)|
Beat the road tax and visit your local John Roe dealership before 31st March 2020.