Understanding Your Car Tax

The reason we pay road tax is to help fund the repairs and works performed to ensure our roads stay in great condition. How the government calculates your road tax depends on when your car was registered:

  • Cars registered before 1 March 2001 are taxed based on engine size.
  • Cars registered on or after 1 March 2001 are taxed based on CO2 emissions and fuel type.

You check your current tax rate using this simple online calculator. Just have the make, model and registration date to hand.

In order to ensure everyone pays their road tax, the government requires you to display your tax disc on the driver's side of your windscreen. This will need to be renewed every year and requires you to take the following action before paying for your road tax online or in a post office:

  • Registering the car in your name;
  • Providing the DVLA with your correct name, address and vehicle details;
  • Receiving your registration certificate;
  • Insuring your vehicle; and
  • Completing your annual MOT.

For company vehicles, you may also need an additional Heavy Goods Vehicle (HGV) or Passenger Service Vehicle (PSV) test certificate in order to successfully complete your road tax transaction.

How you can qualify for road tax exemption

It used to be the case that everyone paid road tax. However, technological advances and changes in consumer priorities mean that many cars now produce exceptionally low carbon emissions. The government now offers tax exemptions to reward drivers of cars that emit less than 100g/km of CO2.

Almost all major car manufacturers produce at least one tax-free model variant, and more brands are finding ways to match the high performance of traditional powertrains with feisty and fuel efficient power systems.

Between the family-friendly Skoda Octavia estate with its 99g/km emissions and 74.3mpg fuel economy and the popular Volkswagen Golf hatchback with outstanding 85g/km emissions and 88.3mpg fuel economy, the options have never been better. Even top-end models like the BMW 1 Series bring emissions down to 99g/km and eke out an impressive 74.3mpg.

Talk to the experts at your nearest Charles Hurst dealership today to find out which of the latest models are eligible for low tax-rates and tax exemption.