Experts are calling on drivers to check whether they are eligible to avoid paying car tax ahead of changes being rolled out in the coming months.
With the new financial year in April, car tax changes will take place as drivers will see taxes rise in line with the retail price index.
In the Autumn Statement, the Government announced it would uprate Vehicle Excise Duty rates for cars, vans and motorcycles from April 1, 2024.
It is expected that costs will increase for the majority of people, although owners of the most polluting vehicles will face the largest price rises.
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Some drivers could be exempt from paying their Vehicle Excise Duty
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Electric vehicle owners are currently exempt from paying VED thanks to their green credentials.
However, this will change in April 2025, with Chancellor Jeremy Hunt announcing that the Government will create a “fairer system” of taxation for all drivers.
Other zero emission cars are also exempt, although there will be fewer of these vehicles will be on the road, including those powered by hydrogen fuel cells.
Owners of historic vehicles can also escape car tax charges if they are older than 40 years old.
If a vehicle was built before January 1, 1983, the owner of that vehicle can stop paying vehicle tax from April 1, 2023.
Some drivers may face difficulties when looking to tax their vehicles, especially if they are older as they may not know when it was manufactured and whether it meets the criteria.
If they do not know when the vehicle was built but was registered before January 8, 1983, they do not need to pay vehicle tax from April 1, 2023.
Similarly, if a vehicle is over 40 years old, the owner can escape extra charges by not needing to get an MOT.
Darren Miller, marketing director at Big Motoring World, said: “With the rising cost of living, drivers are feeling the squeeze as rates for road taxes once again increased across the board this year.
“Fortunately, exemptions are available for disabled drivers to help with this rising cost. It also pays off to upgrade to a newer car or make the switch to hybrid and electric, as lower emissions put you in a lower price band.
“However, it’s important to remember that qualifying for an exemption is not enough, as you will still need to make an official claim before you can reduce your tax bill.”
People do not need to pay their vehicle tax if they are a disabled driver or if they drive a certain type of vehicle, although the exemption only applies to one vehicle at a time.
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Classic cars are exempt from paying car tax
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For new vehicles, drivers should take their Certificate of Entitlement for certain benefits to the dealership to access free tax. These include:
- Disability Living Allowance (DLA)
- Personal Independence Payment (PIP)
- Child Disability Payment (CDP)
- Adult Disability Payment (ADP)
- Armed Forces Independence Payment (AFIP)
- War Pensioners Mobility Supplement (WPMS)
