How to tax your car
Taxing your car is a relatively straightforward process, but there are some things you’ll need to bear in mind. In our guide to taxing your car, you’ll discover how much it will cost, and whether you might be exempt based on the type of vehicle you have.
Key takeaways
Vehicle Excise Duty (VED) varies based on vehicle type, fuel, and CO2 emissions
Car owners can tax their vehicles online via the DVLA's website, at a Post Office, or by phone, requiring documents like the V5C log book and valid MOT
Vehicles over £40,000 face a surcharge for five years post-first registration
How much is car tax?
The cost of Vehicle Excise Duty (VED), commonly known as car tax or road tax, can vary significantly. It is influenced by several factors including the type of vehicle, its fuel type, and CO2 emissions.
Typically, cars with higher emissions face steeper VED charges. This system encourages drivers to choose more environmentally friendly vehicles.
How can I tax my car?
To legally tax your vehicle, follow these essential steps:
Start by visiting the DVLA’s official website. You need your 16-digit reference number from your V11. Or use the 11-digit reference from your log book (V5C)
Have your log book (V5C) to prove vehicle ownership. A valid MOT certificate is required if your car is over three years old. Ensure your insurance covers at least third-party damage. If your vehicle is MOT exempt, have the relevant certificates.
Tax your car online
Documents needed for car taxation
Can I pay my car tax at my Post Office?
Yes, you can tax your car at your local Post Office. When you visit, you’ll need documents including your vehicle log book (V5C), which proves your ownership, and a valid MOT certificate if your vehicle is over three years old.
You must also provide proof of insurance.
How much is my car tax?
The cost of your car tax depends on various factors including the type of vehicle you drive. To find the specific car tax rate for your vehicle, visit the DVLA website.
There, enter your vehicle's registration details. This process will tell you the exact amount you need to pay.
When is my car tax due?
You can check when your road tax is due by visiting the DVLA website. Enter your vehicle's registration number and you’ll be told the specific date when your tax is due.
If you miss the car tax due date, you could face significant consequences. These include a fine. In some cases, your vehicle could be clamped or even impounded.
Which cars are exempt from paying road tax?
Some vehicles are exempt from road tax including:
Vehicles used by disabled individuals
Historic vehicles over 40 years old
Mowing machines
Electric milk floats
To claim an exemption, the vehicle owner must apply through the DVLA. They must provide proof that their vehicle meets the exemption criteria. This process includes submitting specific forms.
In some cases, evidence of the vehicle's status or usage is required. It's crucial to ensure all paperwork is accurately completed to avoid any delays or issues with the exemption.
Are electric cars exempt from road tax?
No. Electric vehicles (EVs) registered in the UK used to be exempt from road tax but the rules changed on the 1st April 2025. How much road tax EV owners must now pay depends on when their car was registered.
How much is road tax for vehicles worth more than £40,000
When you own a vehicle with a list price exceeding £40,000, additional tax implications arise. Firstly, a surcharge is applied for five years starting from the second year of registration.
To calculate the total tax for such vehicles, combine the standard rate with the surcharge.
How do I cancel my car tax for a refund?
You can cancel your car tax and receive a refund by contacting the DVLA to tell it you no longer own the car.
This is also necessary if it's taken off the road, as in the case of a SORN (Statutory Off Road Notification). This notification is crucial as it triggers the cancellation of your vehicle tax.
To be eligible for a refund, your car tax must have been paid in advance. Refunds are typically processed automatically.
The amount refunded will correspond to any full months left on your car tax. The DVLA calculates this by checking the remaining period of your vehicle tax from the date they receive your notification.
Can I pay road tax monthly?
Yes, you can opt to pay your car tax monthly by setting up a direct debit with the DVLA.
Opting for monthly payments can spread the cost over the year, but there is a small surcharge added to the total annual cost when you pay monthly.
Does car tax renew automatically?
Car tax can renew automatically under specific conditions. If you have previously set up a direct debit, the DVLA will usually renew your vehicle tax annually or six-monthly.
Should your circumstances change, such as a change in vehicle ownership or a modification in vehicle tax exemption status, it's important to update your details.
What happens if I drive without tax?
If you're caught without road tax, you could face a hefty fine. The initial penalty is a £80 fine which can be halved if paid within 33 days. However, if the issue escalates, you might end up in court.
The fine could then soar up to £1,000. Besides financial penalties, your vehicle could be clamped or impounded
The legal implications of driving without car tax are severe. It's considered non-compliance with the Vehicle Excise and Registration Act. This means you're not just facing fines. You could also face legal proceedings.
Your vehicle's details could be endorsed on a public database. This database is accessible by police and other enforcement agencies. Any further breaches are more likely to be caught.
If you realise your car tax has lapsed by accident, it’s important to pay it as soon as possible.
