today i learned – weds 15th feb 2017

today’s learning was actually quite a grown up learning about grown up money things! granted, it only came about because of work that i happened to be doing, but still…it counts!

Anyway, as boring as it may sound, the way in which car tax (aka ‘vehicle excise duty’ or ‘ved’ if you love an acronym) is calculated is changing on the 1st april 2017. from then, your car’s value will have an effect on how much tax you pay (from year two at least). 

so, in year one, everything stays pretty much the same; cars will be split into bands based on their co2 emissions and the cost determined by the band that they sit in. Only zero-emission cars get into the super swanky lowest bracket and get to pay absolutely no ved.

it’s year two when everything changes! if the list price of your car is less than £40k then you have to pay a sum of £140 a year regardless of whether your car is petrol/diesel/hybrid (electric cars under £40k go free). if the list price is north of £40k, then you get the lovely privaledge of paying an additional £310 a year on top of that £140.

as these brackets are based solely on list price, any people hoping to buy a tesla to have a mad 0-60mph time and not pay road tax, will still get a super mad 0-60mph time but will have to pay £450 a year for the joy.

the changes only concern cars that are registered on or after the 1st april…so if you want a mad new car based upon the old calculations, you need to get on it pronto and buy a car that will be first registered before the 1st!

possibly a shameless plug of something that i wrote (and that is almost identical to what you just read – i’m impressed with what i remembered) you can read all of this and find a link to the gov’s shiny pdf of graphs and changes —-> here <—-

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