You may have heard there are Vehicle Exercise Duty – or road tax – changes coming in April. And unfortunately, it’s true.
What’s Vehicle Exercise Duty?
Vehicle Exercise Duty (VED), or road tax as it’s more commonly known, is an annual tax you pay on your vehicle. How much you pay depends on how much CO2 it releases.
As a general rule of thumb, the more carbon dioxide emitted from your vehicle, the more you’ll pay.
And even though that will stay the same in April – as all road tax bands will remain as they are – it may be more expensive to buy a new car in April 2020 compared to March.
Road Tax Changes In April 2020
The change is happening because the way a vehicle’s emissions are calculated is changing.
Currently, all cars go through the New European Driving Cycle test, or NEDC for short. But from April 6, 2020, the Worldwide Harmonised Light Vehicle Test Procedure – WLTP – will be used instead.
The WLTP is designed to reflect more real-world driving, rather than the emissions produced under test conditions. So, cars will produce more CO2 emissions.
What The VED Changes Mean For You
According to research conducted by the government, most cars will experience between a 10% to 20% increase in CO2 emissions through the new test, so they’ll fall into a higher tax bracket.
Simply put, that means you’ll have to pay more road tax.
Will The 2020 Road Tax Changes Affect Me?
The changes to VED will only affect you if you’re buying a brand-new car, and they’re only higher for the first year.
In the following years, petrol and diesel owners will pay £145, hybrids will be £135 and electric car owners will face no charge.
If you’re buying a new car that’s worth more than £40,000 after April 2020, you’ll also face a £320 annual surcharge for five years from your second tax year.
Is There A Way To Avoid The April 2020 Road Tax Increase?
If you’re wanting a new car, but are keen to avoid the VED rise, the easiest way is to change your car before April.
As long as your new car is registered before March 31, 2020, you won’t have to pay the higher tax amount.
View our stock online or get in touch to find out how we can help.
Alternatively, search through our thousands of Hippo Approved used cars and escape the rising road tax.