2016 has been a year of shocking announcements, Brexit, Trump’s nomination, Bradgelina’s break up and now another one has been declared; the changes to the road tax bands…
Naturally, this topic will grab your attention and might cause confusion, so here at miDrive, we have compiled some tips and summaries to help you understand the changes so you’re prepared for when these changes occur.
WHAT IS ROAD TAX?
For those of us who haven’t bought our own car, and may still be learning in our parent’s, road tax may seem an alien subject. It is a tax all car owners must pay every 6-12 months to allow us to use public roads, it’s illegal to own and use a car without it!
WHAT IS CHANGING?
Road tax is currently based on the CO2 emissions polluted by cars, the more pollution you car creates, the more expensive your tax will be- seems fair. The aim of this was to encourage us all to buy cars which are less harmful to the environment, however, the government now seem to feel that this isn’t really working as the incentive to buy an eco-friendly car isn’t big enough.
Therefore, the new road tax laws are only dependent on CO2 emissions in the first year, after that there is a set fee: £0 for 0 emission cars and £140 for any other cars.
There is also another charge for cars bought for over £40,000, this is £310 annually for the first 5 years (for both 0 emissions and anything else).
HOW WILL IT AFFECT ME?
This new tax will only impact new buyers AFTER April 2017. Anyone else with cars will still be under the old tax bands.
New buyers will all be affected differently, the worst for this will be small, eco-friendly cars that are not 0 emissions (about 105 g/km). They will no longer benefit from being eco-friendly and will simply be classed as polluting and thus charged the full £140. However, a sporty SUV car with not so ‘eco-friendly’ emissions (about 226 g/km) will benefit from these changes, paying less than they normally would have.
SO… WHAT TO DO NEXT?
If you are not wanting to purchase a new car then you need not worry, continue watching KUWK and TOWIE and remain blissfully unaware.
BUT.. if you are wanting to buy a new car, you may want to consider purchasing it before April 2017, or going for an ultimately eco-friendly car with 0 emissions, some of them can be quite attractive… and it’s what’s on the inside that counts anyway.
Written by Lydia Garratt
Last modified: 14th October 2016