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What you need to know for vehicle tax rates 2022

What you need to know for vehicle tax rates 2022


How much extra could you be paying for your car this year?

But what will change in 2022

It’s something drivers deal with most years - a change in Vehicle Excise Duty (VED), more commonly known as car tax. It directly contributes to how much motorists will pay to run their cars during the year, so any variation to it can make a big difference.

But what will change in 2022 and how will it affect you? We’ve got the breakdown.

So when were these changes announced?

Chancellor Rishi Sunak made the announcement during his Autumn Budget while he outlined many other measures affecting the UK. Fortunately, the changes he announced weren’t as drastic as some motorists feared.


What changes were announced?

As expected, Rishi Sunak announced that VED rates would be rising in line with the Retail Price Index, or RPI. This is a measure of inflation and is the rate at which the price for goods and services rise. 


But what does this mean for me?

There are two payments which make up VED - standard rate and a first year rate, the latter of which is often referred to as a ‘showroom’ tax, which is based on the CO2 figures of the new car you’re buying. The standard rate is what you’ll pay each year after that. 


When it comes to cars registered on or after April 1, 2017, the changes are as follows. For electric vehicles which produce 0g/km of CO2, the VED will remain at zero, meaning you’re not paying any VED. 


However, for all other types of cars drivers will be looking at an increase of £10 on average to their VED bills. That means a car with CO2 outputs of between 1 and 50g/km will have a standard rate increase from £155 to £165, though the first-year rate will remain at £10. 

At the other end of the scale, cars with CO2 emissions of over 255g/km will see their standard rate increase from £155 to £165, while the first-year rate will increase from £2,245 to £2,365. 


What if my car is older?

If your car is registered on or after March 1, 2001, then things might be changing too. Fortunately, for bands A, B and C, your standard rates are remaining the same at zero, £20 and £30 respectively, meaning that drivers of cleaner, more efficient vehicles aren’t suffering an increase. 


For cars in band D, the standard rate is increasing from £130 to £135, while cars in band E will increase from £155 to £165. 

Band F cars will rise from £170 to £180 and cars in band G will see their standard rate increase from £210 to £220. 

Cars in band H will have their standard rate bumpers from £250 to £265 and band I cars will be increased from £275 to £290.

Those cars in band J will have a rate increased from £315 to £330 and those in band K will increase from £340 to £360. 

Vehicles in band L will have a standard rate pushed from £585 to £615 and, finally, band M cars will have a standard rate increased from £600 to £630.

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