VED (Car Tax) Changes
Vehicle Excise Duty, or VED is generally known as the car tax. In recent years, in a drive to reduce CO2 emissions and thereby lessen the effects of motoring pollution, the government has used the VED system to penalise drivers with less efficient cars. They made changes that came into force in April 2017, but because so many cars were falling into the zero or lower rated bands, they have tweaked the bands from April 2018 onwards. It means that drivers of new vehicles will be paying more, something to bear in mind next time you’re in the car showroom.
As before, you’ll have to pay a tax rate in the first year of ownership that is linked directly to the car’s CO2 emissions. Thereafter, there is a standard rate each year of £140 for cars whose list price is less that £40,000, and a standard rate that includes an additional £310 cost for cars over £40,000. It means that premium models will now cost £450 in total per year to tax.
It does signify for new vehicles, that the days of a VW Golf 2-litre diesel costing only £20 per annum in car tax are over. But the government have promised that the tax raised will go directly to road improvements, so perhaps we will all come out as winners.
The most notable change is that defects will be categorised differently than before. Now you will be told about Dangerous, Major or Minor faults. Dangerous and Major faults will both result in a fail, while Minor defects will be passed. MOT testers will continue to give advice about items you need to monitor, known as ‘advisories’.
We’ve got a full rundown on the changes here.
The current MOT test certificate will change to a new style that will list the types of defects. And most vehicles over 40 years old will no longer need an MOT as long as they haven’t been substantially changed.
If you ever worry about forgetting the date of your MOT – and remember that there’s a £1,000 fine if you’re found driving without a valid MoT certificate, there is a new reminder service. Drivers can now get a free annual text message or email four weeks before their car’s MOT is due. You just need to sign up online.