Diesel Car Owners Face Steepest Vehicle Tax Increases from April
Diesel vehicle owners are set to bear the brunt of significant Vehicle Excise Duty (VED) increases this spring, with annual bills potentially reaching £5,690 for the highest-polluting models. The new tax structure represents a substantial rise in motoring costs across the board, with diesel drivers facing particularly severe financial impacts.
First-Year VED Rates Doubled for High-Emission Vehicles
First-year rates for brand-new vehicles were doubled last year, with charges for models emitting over 255g/km of carbon dioxide rising dramatically from £2,745 to £5,490. These figures are now subject to annual inflationary adjustments, with current estimates suggesting an additional £200 increase that would push total annual costs to approximately £5,690 per vehicle.
AutoTrader has clarified the situation for diesel owners: "If you drive a diesel car that doesn't meet the Real Driving Emissions 2 (RDE2) standards, you will have to pay higher first-year VED, which means your tax bracket will fall in one higher Band rate than it would've with an RDE2-compliant diesel car."
Penalties for Untaxed Vehicles Could Escalate Quickly
Vehicle owners who fail to properly tax their cars face a series of escalating penalties. Registered keepers of untaxed vehicles will receive a Late Licensing Penalty (LLP) letter with an initial fine of £80, which can be reduced to £40 if paid within 33 days. Failure to pay results in the case being referred to a debt collection agency.
Those caught using or keeping an untaxed vehicle without a Statutory Off Road Notification (SORN) will receive an Out of Court Settlement (OCS) letter requiring payment of £30 plus one-and-a-half times the outstanding vehicle tax rate. If this settlement isn't paid, the case may proceed to magistrates' court with potential penalties of £1,000 or five times the chargeable amount, whichever is greater.
Additional Consequences for Non-Compliance
The penalties become even more severe for vehicles with SORN declarations that are found on public roads. In these cases, the penalty increases to £2,500. In both scenarios, authorities may clamp the vehicle with a £100 release fee payable within the first 24 hours.
If the vehicle is removed to a pound, the release fee increases to £200, with additional storage charges of £21 per day beginning immediately after removal. These measures underscore the importance of maintaining proper vehicle taxation, especially as VED rates continue to rise significantly for certain vehicle types.
