Drivers are being urged to change their habits in order to save money on car tax with major changes expected to be launched within months.
From April 1, 2024, new car tax changes will be introduced after the Government announced it would uprate VED rates for cars, vans and motorcycles in line with RPI.
The Chancellor said these changes would be made to ensure that Vehicle Excise Duty (VED) receipts are maintained in real terms and that all motorists “make a fair contribution”.
However, motorists could save money on their car tax by making use of a simple tip to avoid any additional costs.
Car tax changes are expected to take place in April
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Millions of drivers have complained about the cost of motoring in recent times with the cost of fuel, car insurance and car tax all putting pressure on Britons.
A spokesperson from Wessex Fleet explained how drivers across the UK could make a change to their habits to save money on their car tax.
They said: “The price paid for road tax depends on your car's emissions and when it was registered.
“However, the average amount is rising for 2024 to around £190 annually, but you can pay nothing if your car meets the required standards.
“When paying for your road tax, the cheapest way to pay for this is annually to avoid a five per cent surcharge on monthly or six-month repayments.”
There have been suggestions that car tax rates will increase and have an impact on the majority of drivers, with even the lower tax bands seeing an increase.
For drivers with the most polluting vehicles, drivers could face a tax rise of almost £150, although this has yet to be confirmed by the Government.
The spokesperson continued, saying: “If you are thinking about getting a new car in 2024, one option to save money is to look for a vehicle with fewer emissions to pay less on road tax each year.
“Electric vehicles are one such example as they are currently exempt from road tax, although this could change in the future.”
Chancellor Jeremy Hunt said electric vehicle owners would begin to pay car tax from April 2025.
He said this was necessary to ensure that all motorists begin to pay a “fairer tax contribution” during the 2022 Autumn Statement.
Any new zero emission vehicles registered on or after April 1, 2025, will be liable to pay the lowest first year rate of VED, which is currently £10 a year.
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From the second year of registration onwards, they will be moved to the standard rate, currently at £165 a year.
Zero emission vehicles registered between April 1, 2017, and March 31, 2025, will also pay the standard rate from April 1, 2025.
Given that the majority of new electric vehicles cost more than £40,000, drivers will need to pay the Expensive Car Supplement, which is currently set at £355.