• What is road tax?
• How is road tax calculated?
• How much is road tax for electric vehicles?
• Remember to tax your vehicle!

 

What is road tax? 

Road tax, also known as Vehicle Excise Duty (VED), is a type of periodic tax paid in the UK on vehicles using public roads. It is a legal requirement to pay road tax and is a fee paid to the UK government that covers the cost of road upkeep and maintenance, as well as any other safety measures to ensure safe travel. 

 

How is road tax calculated?

Road tax is calculated based on when a vehicle was registered, the fuel type and the amount of CO2 emissions produced by a vehicle.

For all vehicles registered before March 2001, the tax is calculated based on the size of the engine. For all vehicles registered after this date, road tax is calculated solely according to the CO2 tailpipe emissions.

For vehicles registered between 1st March 2001 and 31st March 2017 and have CO2 emissions less than 100 g/km, they are not subject to pay road tax. However, for vehicles registered after 1st April 2017, new tax bands now apply.

Plug-in hybrid vehicles (PHEVs) have a reduced road tax fee and if your PHEV costs £40,000 or more, you will be required to pay an annual supplement for 5 years with the fee starting from the second time the vehicle is taxed.

You can use the Government’s road tax calculator to see how much your road tax will be.

 

 

How much is road tax for electric vehicles?

Electric vehicles produce significantly less CO2 emissions than gasoline vehicles that run on petrol or diesel and therefore the road tax is reduced or non-existent. However, the type of electric vehicle you own will affect the amount of road tax you pay. 

 

Battery Electric Vehicles (BEVs)

If you have a fully electric vehicle, you are exempt from paying road tax, due to it producing zero CO2 emissions.

 

Plug-in Hybrid Vehicles (PHEVs)

Plug-in hybrid vehicles (PHEVs) have a reduced road tax fee, which is likely to cost between £0-135 depending on the amount of CO2 emissions emitted.

 

Premium Rate

For vehicles registered on or after 1st April 2017 and cost over £40,000, there is a premium rate which you are required to pay which acts as an additional road tax charge. Gasoline cars will need to pay £475 for the first five years, compared to electric vehicles which receive a reduced rate of £325. The fee starts from the second time the vehicle is taxed and BEVs are exempt from paying this premium rate. 

 

See the cost of road tax for vehicles registered after 1st April 2017: 

 

CO2 Emissions	First Year Rate	Standard Rate (Second year onwards)	Premium Rate (Vehicles worth > £40k)
0 g/km	£0	£0	£0
1-50 g/km	£0	£145	£335
51-75 g/km	£15	£145	£335
76-90 g/kg	£105	£145	£335
91-100 g/kg	£130	£145	£335
101-110 g/kg	£150	£145	£335

 

 

Remember to tax your vehicle!

You still need to tax your vehicle even if it is exempt from paying road tax. The process is simple and can be carried out online here or at your local post office.