From April 1, 2022, vehicle excise duty (VED) will be rising in price for drivers in line with inflation measured by the Retail Prices Index (RPI) – or inflation. The price hike to car tax will be applied to both petrol and diesel vehicles, with electric cars being exempt from paying VED charges.
Car tax is measured by how environmentally friendly a car is and the level of CO2 emissions which are released through the exhaust pipe.
Kevin Pratt, car insurance expert at Forbes Advisor, warned drivers of the consequences they face if they don’t tax their vehicles.
Speaking to Express.co.uk, he said: “Vehicle Excise Duty – or car tax, to you and me – is just one more household expense that’s on the way up, with an inflation-linked hike from April helping fuel the UK’s deepening cost of living crisis.
“Drivers are already looking at pump prices in despair, but as one wag put it – at the height of lockdown, you weren’t allowed to travel more than five miles from your home. Now, you simply can’t afford to.
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Mr Pratt continued, saying: “Attempting to dodge paying would be a bad idea.
“You’ll be fined £80 (cut to £40 if you pay promptly) if you’re caught, and it’s almost inevitable that you will, thanks to automatic licence plate recognition linking to the DVLA’s database.
“They can send you the sort of brown envelope you don’t want on your doormat, in this of all years.
“And, of course, you’ll still have to pay the tax that’s due on top of the fine.
“If you don’t pay the £80, you could be taken to court and hit with a £1,000 fine, and the police can clamp your car until you do pay.”
Chancellor Rishi Sunak will announce any further changes to car tax rates for 2022/23 when he delivers his Spring Budget on March 23, 2022.
Drivers can check their car’s emissions figures then work out how much more they are likely to pay from spring 2022.
These figures will be confirmed when Rishi Sunak delivers his Budget.