Car tax, also known as Vehicle Excise Duty or VED, can account for a significant amount of your vehicle's operating costs. The amount of auto tax you owe can be affected by your age, purchase price, fuel type, and CO2 emissions.
So, how exactly does VED work? And how much does it cost to tax my car?
Vehicle Excise Duty (VED): The Fundamentals
In general, you must pay vehicle excise duty (VED) if you:
- Your vehicle is enlisted in the United Kingdom.
- It is driven on public roads.
The official automobile tax rates are set by the Driver and Vehicle Licensing Agency (DVLA). These are depending on your vehicle's:
- Registration year
- Engine capacity or official CO2 emissions (found on your V5c registration papers)
- The list price of your vehicle as of April 2017
However, some vehicles are exempt from VED. The following factors will determine whether you are eligible for an exemption:
- The type of vehicle
- Your personal circumstance
If you're still concerned about vehicle taxes and want to discuss tax and tax difficulties, seek the help of qualified accountants in London.
What automobiles are exempt from paying car tax?
Certain types of vehicles are exempt from paying automobile tax. They are as follows:
- Cars that run on electricity
- Vehicles that run on steam
- Tractors are examples of agricultural vehicles.
- Vehicles constructed prior to January 1977 are considered historical.
- Vehicles used to transport people with disabilities
- Mobility scooters and other vehicles capable of reaching speeds of up to 8 miles per hour on roads and 4 miles per hour on pavements
If you have a disability, you are also exempt from paying car tax. In either case, you should hire the services of cheap tax return accountants to complete the car tax application and then claim the exemption.
Do I have to pay car tax if I no longer drive my car?
If you stop driving your car, you do not have to pay car tax.
However, you must notify the DVLA that your vehicle has been removed from the road. You must file a Statutory Off Road Notification, or SORN, to accomplish this.
A SORN does not need to be renewed. It is valid until you re-tax your vehicle, sell it, scrap it, or permanently remove it. You will also be able to drive if you have a scheduled MOT or other testing.
However, if you are caught driving for any other reason, you face prosecution and a £2,500 fine.
For further details about taxes, consult cheap accountants in London