09/01/2019
The start of April often heralds a period of change for motorists across the United Kingdom, and 2024 is no exception. As the financial year ticks over, several new driving laws and, most significantly, adjustments to Vehicle Excise Duty (VED), commonly known as car tax, are set to impact vehicle owners. Understanding these changes is crucial for budget planning and avoiding unexpected penalties. This article will delve into the specifics of the VED increases, explore other driving law updates, and provide clarity on how these affect various vehicle types and owners.
The Rise of Vehicle Excise Duty (VED)
The most significant change affecting a broad spectrum of drivers is the increase in Vehicle Excise Duty. From April 1st, 2024, VED rates for most petrol and diesel vehicles will rise in line with the Retail Price Index (RPI) inflation. This means that if you own or are planning to purchase a vehicle, you should be aware of these updated charges.
VED Increases for New and Existing Vehicles
The specific increases vary depending on the vehicle's age, CO2 emissions, and value. For brand-new models producing 255g/km of CO2, the first-year rate will see a substantial jump of £140, increasing from £2,605 to £2,745. This disproportionately affects the most polluting vehicles, reflecting a broader governmental push towards lower-emission transport.
For cars registered between 2017 and the present day, the standard VED rate will increase by £10, moving from £180 to £190. This applies to vehicles that do not fall into the lowest emission categories. Furthermore, the Expensive Car Supplement, which applies to vehicles valued over £40,000, will also see an increase, rising to £410.
Owners of cars registered between 2001 and 2017 will experience an increase of up to £40, depending on their vehicle's specific emissions. Even older vehicles, manufactured before 2001, will face an increase of up to £20 in their annual charges. While these might seem like smaller increments, they contribute to the overall cost of vehicle ownership.
Impact on Electric and Low-Emission Vehicles
It's important to note that electric and other low-emission vehicles (those with very low CO2 emissions) will continue to be exempt from VED for one more year. However, this exemption is set to end from April 2025, meaning owners of these vehicles should prepare for their first VED charges next year. This signals a future where incentives for zero-emission transport may evolve.
New Vehicle Orders and Tax Rates
For those who have quoted and ordered a vehicle in 2024 for delivery in 2025, the tax rate applied will depend on the delivery date. If your vehicle is delivered after April 1st, 2025, you will be charged the new, increased tax rates. However, if your vehicle is delivered before April 1st, 2025, your contract will either be adjusted to reflect the 2024/25 tax rates or you will receive a refund for any difference paid. It is crucial to confirm the delivery date and the applicable tax rates with your dealer.
Other Key Driving Law Changes in April 2024
Beyond VED, several other driving-related changes are coming into effect:
International Driving Permits (IDPs)
A significant change affects motorists planning to drive abroad. International Driving Permits (IDPs) are no longer available from Post Office branches. Instead, they can now only be purchased from PayPoint stores. This change impacts travel to over 140 countries where an IDP may be required, particularly for longer stays or in countries outside the EU, such as the United States and Mexico.
EU Driving Licence Updates
British expatriates residing in countries like Norway are subject to new rules concerning the exchange of their UK driving licences. Updates to regulations governing the exchange of driving licences from non-EEA countries will apply from April 1st, 2024. This means that the process and requirements for exchanging a UK licence for a local one may have changed.
French Car Insurance Changes
For British expats living in France, a notable change involves the digitisation of car insurance proof. France is phasing out the physical ‘carte verte’ (green card) windscreen sticker, which served as proof of insurance. From April 1st, drivers will receive a digital ‘Mémo Véhicule Assuré’ (MVA) which can be kept in the vehicle or on a smartphone. This move aims to streamline the process and combat uninsured driving.
Parking Fee Adjustments
Several London boroughs are implementing changes to parking fees, with combustion engine vehicle owners often bearing the brunt of the increases. For example, in Tower Hamlets, a 12-month residents' parking permit for petrol and diesel cars will cost £184, significantly higher than the £36 for fully electric models. Lambeth is also increasing standard rates and diesel surcharge fees, potentially leading to much higher hourly parking costs in areas like Waterloo. Westminster Borough will also be withdrawing concessions for electric and plug-in hybrid vehicles from April 8th.
MOT Certificate Updates
From April 29th, 2024, motorists will no longer receive a physical paper MOT pass certificate. Instead, pass certificates will be issued electronically. You will be able to check your MOT result online as soon as the test is completed. While MOT fail certificates will still be issued physically for now, a move to digital is anticipated in the near future.
Summary Table of Key Changes
| Change | Effective Date | Details |
|---|---|---|
| VED Increase (Petrol/Diesel) | April 1, 2024 | Rates rise in line with RPI inflation. Higher increases for polluting vehicles and expensive cars. |
| VED Exemption Ends (EVs) | April 2025 | Electric and low-emission vehicles will start paying VED from next year. |
| IDP Purchase Location | April 1, 2024 | No longer available at Post Offices; now at PayPoint stores. |
| French Car Insurance | April 1, 2024 | Physical ‘carte verte’ replaced by digital MVA. |
| Parking Fees | April 2024 (various dates) | Increases in many London boroughs, often higher for petrol/diesel. EV concessions may be withdrawn. |
| MOT Pass Certificates | April 29, 2024 | Certificates become electronic only. |
Frequently Asked Questions (FAQs)
Q1: Will my car tax increase if I have a petrol car?
Yes, almost all petrol and diesel car owners will see an increase in their Vehicle Excise Duty from April 1st, 2024, in line with RPI inflation.
Q2: Are electric cars still exempt from car tax?
Yes, electric and low-emission vehicles remain exempt from VED until April 2025. From April 2025, they will be subject to VED charges.
Q3: I ordered a new car in 2024, but it will be delivered in April 2025. Which tax rate will I pay?
If your vehicle is delivered after April 1st, 2025, you will be charged the new, higher tax rates. It is advisable to clarify this with your dealership.
Q4: Where can I get an International Driving Permit now?
International Driving Permits can now only be purchased from PayPoint outlets, not from Post Offices.
Q5: What is the change regarding MOT certificates?
From April 29th, 2024, MOT pass certificates will be issued electronically only. You will be able to check your result online.
Staying informed about these changes is essential for all UK motorists. The increase in VED, while perhaps unwelcome, reflects broader policy shifts towards environmental concerns and fiscal adjustments. By understanding these updates, drivers can better manage their vehicle running costs and comply with new regulations.
If you want to read more articles similar to Understanding UK Car Tax Changes April 2024, you can visit the Automotive category.