Honest John News Tax & Insurance

Autumn Statement 2022: Millions of cars face higher tax

  • Zero and low emission cars (sub 100g/km) first registered between 1 March 2001 and 30 March 2017 will no longer be exempt from road tax. 
  • These cars will move to the Band B rate, currently £20 a year. 
  • Popular models such as the Ford Fiesta, Volkswagen Golf and Nissan Qashqai will be affected.

Millions of motorists will soon find that their zero or low emission car is no longer exempt from vehicle excise duty (VED), also known as road tax, under changes announced in the Autumn Statement (17 November 22).

While attention has focused on electric vehicles (EVs) being charged road tax for the first time, the Chancellor Jeremy Hunt has quietly brought in a new road tax rate for older vehicles, registered between 2001 and 2017.

The change, which will take effect from April 2025, applies to popular models such as the Ford Fiesta, Volkswagen Golf and Nissan Qashqai, which emit less than 100g/km and currently have zero road tax. 

In the published Autumn Statement it states that zero and low emission cars first registered between 1 March 2001 and 30 March 2017, currently in Band A, will move to the Band B rate, currently £20 a year.

Volkswagen Golf 2013 (14) 

Many of these small, more efficient petrol and diesel cars will be driven by essential workers and families already hit by the extraordinary rise in the cost of living.

UK inflation levels have hit 11.1 per cent - a figure not reached for 41 years - and energy costs are set to rise to further. 

Hunt acknowledged that the UK is now officially in recession but pledged that there would be a "shallower downturn" as a result of the fiscal measures in the Autumn Statement. 

The Office for Budget Responsibility (OBR) expects inflation to rise to 9.1 per cent this year before falling to 7.4 per cent next year. 

Which cars are exempt from road tax?

Electric vehicles are currently exempt from vehicle excise duty (VED), also known as road tax. However, from April 2025 they will be charged.

Zero and low emission cars (sub 100g/km) first registered between 1 March 2001 and 30 March 2017 are also set to start paying road tax. 

How can I check my car's road tax?

You can check the current road tax rates for 2022 here. You can also use put your vehicle's registration into our VED tool. 

Ask HJ

How many days grace do you get for expired road tax?

My road tax ran out yesterday (the email was sent to my spam folder, so I obviously haven't seen it). I'm currently away without my logbook/V5C. Can you tell me how long I get to re-tax the vehicle?
Legally, the car must have valid VED road tax at all times. The only exception to this rule is if the car is parked away from the public road and declared SORN (statutory off road notification). A car that's neither taxed or SORN'd will result in a late licensing penalty fee being issued automatically. The fine is set at £80 and reduced to £40 if paid within 33 days. However, if the car is on a public road, it may also be clamped.
Answered by Dan Powell
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Ask HJ

Do I need to tax and MoT my car if I am not using it due to ill health?

Do I need to tax and MoT my car I am not using due to ill health?
Yes and no. If the car is parked on a public road then it must be MoT'd, insured and taxed at all times. However, if the car is away from the public road (on your driveway, for example) you can place it on SORN and get a refund on the road tax VED. A car on SORN doesn't need insurance or an MoT either, but I would recommend keeping the insurance - otherwise, you'll be uncovered in the event of a theft.
Answered by Dan Powell
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