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2018 Road Tax updates - What's The Latest?

2018 Road Tax updates - What's The Latest?

In October, Chancellor Philip Hammond announced his 2018 Autumn Budget, which included a cash injection of around £30 billion for England's transport infrastructure.

The money will be spent upgrading the standard of our roads, with an extra £420 million to be dedicated to fixing potholes - one of road users' biggest bugbears. It's good news for drivers, and a great example of how government funds raised through road tax are spent.

 

 

But with this year also seeing new updates to Vehicle Excise Duty (VED) - or road/car tax as it's usually called - how much road tax could you end up paying? What's more, could this make buying a new car even more expensive in 2018?

Let's run through the latest changes to the UK's road tax bands.

 

How has road tax changed from 2017 to 2018?

Just last year, road tax rules were introduced that based the price you pay directly on the amount of CO2 emissions a new car emits. The changes meant that all new cars registered from April 2017 were subject to an upfront, first year charge based on their efficiency ratings - up to £2,000 for a car that emits over 225g of CO2 emissions per kilometre on the road.

Last year's updates also brought in a £310 tax bill for new car owners who spend more than £40,000 on their new set of wheels, payable every year for the first five years of ownership. This is on top of the standard rate road tax of £140 a year for cars that produce 1-50g/km, or £130 for those that use an alternative fuel source, such as hybrids and plug-ins.

 

 

All of this still stands in 2018 - but there's further expense for car buyers looking to purchase a new diesel vehicle this year.

Diesel cars have been re-classified under the 2018 road tax rules, moving up a band depending on the level of CO2 emissions they generate. This means that any new diesel car registered after April 2018 has become even more costly to own within the first year.

 

How much more road tax will you pay on a new diesel car?

Here's what the 2018 road tax rules mean for those looking to buy a new diesel car:

 

These hikes, which are pretty hefty across some emission classifications, may mean that car manufacturers factor the increases into car price tags but, either way, diesel ownership is now more expensive than it was last year.

 

Why have diesel road tax bands changed?

According to the government, these latest changes to diesel road tax bands are designed to encourage car buyers into cleaner cars, and to raise funds to go towards clean air initiatives. It's hoped that these tax increases will raise £125 million over the next year or so.

 

 

How can you avoid paying sky-high road tax?

Just like last year's road tax changes, this year's updates only affect cars registered after this April - so the best way to avoid paying large amounts of road tax and still take to the road in a great car is to buy used.

 

At Carbase, many of our fantastic used cars are only one or two years old, so you get all the benefits of a low-mileage, safe and efficient car with all the mod-cons, without having to spend more than you'd like on road tax. Could we have your next car in stock right now? Take a look!

 

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