How to Tax Your Car
By Motor Match • 20/03/2024
Are you a first-time car owner or a seasoned driver still confused about the intricacies of car tax? This blog will make understanding the process much easier!
Road Tax: What It Means And Why You Need It
Often referred to as road tax, car tax is an annual levy charged to car owners. This statutory payment, managed by the Driver & Vehicle Licensing Agency (DVLA), is mandatory for the vast majority of vehicles. Whether you choose to pay it annually, biannually, or monthly, unless your car is exempt from road tax, it's generally accepted as a cost for motoring in the UK.
Exceptions exist for vintage cars (over 40 years old), 100% electric cars, and for people in receipt of specific disability benefits. However, every other car owner has to pay this tax which contributes to the government's Consolidated Fund, used for a plethora of services ranging from healthcare and education to infrastructure and pension schemes.
How Much Does Car Tax Cost?
The amount you pay as road tax can vary greatly. The majority of motorists pay around £180, but factors such as your car's first registration date and its emission levels play a significant part in the final amount. This cost tends to increase annually, with the most recent rise implemented in April 2023.
Some cars registered before 1st April 2017, that emit less than 100g/km of CO2, are eligible for VED band A which results in a £0 road tax fee.
How to Tax Your Car
The process of taxing your car can be accomplished via three main avenues: online, at the post office, or over the phone.
To tax your new car online, visit the DVLA's official website and follow the prompts. If you're renewing the tax on your vehicle, you should receive a reminder containing a 16-digit reference number that you can use online or over the phone to re-tax your vehicle. Alternatively, you can use your car's V5C logbook to retrieve the necessary information.
To tax your car at the Post Office, you'll need the aforementioned documents plus a valid MOT certificate. And if you'd rather handle this over the phone, you can call the DVLA directly.
Is My Car Taxed? And Can I Get A Refund?
To verify the status of your car tax, you can check on the DVLA website. Simply provide your car’s registration and follow the indicated steps.
In cases where you sell your car midway through its taxation period, you're eligible to claim a road tax refund. Other scenarios for tax refund include when your car is stolen, exported, scrapped, written-off, or taken off the road via a SORN declaration. Bear in mind that refunds are only issued for complete months and are sent via post in form of a cheque.
Understanding car tax can seem daunting, but with this guide, you're equipped with the necessary information to successfully navigate the vehicle taxing terrain. So buckle up and enjoy your ride, knowing you're fully compliant with your road tax obligations.
You may also like…