In today's world driving a car has become indeed very expensive due to the increased car tax rates that one needs to pay for their vehicle. The road car tax is evaluated on the basis of the engine size or CO2 emission levels depending on the age of the car. These CO2 emissions are measured in grams per kilometre (g/km) driven. The official CO2 emissions figure can be found on the V5 registration document and this can be used further to determine the road tax rates.
The basic idea behind the road car tax online is to crack down on the vehicles that cause the high rate of pollution. The UK government encourages the use of fuel efficient greener cars that produces less CO2. Based on the CO2 emission levels car tax rates can be determined in a series of payment bands.
There are a series of seven car road tax bands, A to G as announced in 2008 budget but it is set to rise to 13 car tax bands from 2009. The current highest tax band, band G, was added in the 2006 budget and applies only to cars newly registered after 23 March 2006. However the cars like electric and hybrid cars are exempted from the road tax.
According to the UK government the new car tax rates will be introduced in the year 2009 that will cover more car tax bands based on the CO2 emission than that existing in the current system. The road car tax rises will be a maximum of £5 in 2009 but from April 2010, the car tax rates can be up to £30. All those car owners who own fuel efficient greener cars would see no change in their car tax rates, or a reduction of up to £30 whereas those using LPG or biofuel would continue to receive a small discount.
Thus from April 2009, Vehicle Excise Duty (VED) would be made applicable to those who drive inefficient cars that cause pollution. From April 2010, there will be a new "first year" tax rate for new cars, those releasing more than 160 g/km C02 emissions will be accountable for increased payments. For those new cars emitting over 255g/km C02 emissions on the road it will cost £950.00, £455.00 of which will be the Vehicle Excise Duty (VED). The cars that emit under 130g/km of C02 will be excused from the tax for the first year.
Here are some taxing tips that can help you to cut down on your car tax expenses:
- Always refer to the DVLA's new online services in case you wish to renew your car tax online.
- Use the car tax calculator online to find out the amount you will have to pay and CO2 data on your car or other road vehicle.
- Always check with the dealer or refer to the V5 for the vehicle when you're buying to check for the level of CO2 emissions.
- You can cut down on your motoring expenses through the use environment friendly or fuel efficient cars that cause less emissions.
- You can go for hybrid or electric cars or have an alternative to petrol such as LPG.