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Vehicle Excise Duty (VED) rates will be increasing from 1st April 2020. Find out why and what you can do to avoid paying more for your car.
Jan 28, 2020
One way of beating the tax increase is by knowing exactly what it is and why it's happening in the first place. Here's everything you need to know about the road tax (VED) changes set to take course on 1st April 2020.
If you're a driver in the UK, you'll know that you have to pay for something called Vehicle Excise Duty or a road fund licence (commonly called car tax or road tax). The amount you pay will depend on factors such as engine size, fuel type and the amount of CO2 emissions your vehicle generates at the time it is first registered.
You can now understand why diesel car owners usually have to pay a higher rate of VED than petrol users, and why electric vehicle owners are exempt from paying car road tax entirely. In simple terms, the lower your CO2 emissions are, the lower the rate of your vehicle excise duty.
Previously, this was measured through the New European Driving Cycle test (NEDC) which was first developed in the 90s and last updated in 1997. However, with the rise in advanced technology in the last decade, NEDC testing has become outdated and is no longer truly representative of real-life driving.
Instead, a new method of testing called Worldwide Harmonised Light Vehicles Test Procedure (WLTP) replaces it. The upcoming WLTP method is able to determine a more realistic evaluation of your vehicle's official fuel consumption (mpg), driving range and CO2 emissions (g/km).
As a result, your vehicle's CO2 emission output will change, placing it in a higher tax band to its current rate, causing an increase in the cost of your road fund licence for the first year.
The change is set to be introduced on 1st April 2020 for Vehicle Excise Duty and 6th April 2020 for Benefit-in-Kind on Company Car Tax. Remember, the change will only affect your very first Vehicle Excise Duty payment when you buy and register a new vehicle after these dates.
The new WLTP method reflects better real driving conditions to provide a more accurate representation of your vehicle's emissions and fuel economy. Unfortunately, the NEDC method of testing has now become outdated and does not provide an accurate interpretation of your vehicle.
Of course you're now wondering what this all means for you. Using the table below, you will be able to calculate which tax band your vehicle would be in if you were to buy it after 1st April 2020:
Buying your new car before the April 2020 road tax increases could save you a fair bit of money on the first year of Vehicle Excise Duty. Take our example of the Mazda CX-5 SUV which encounters the biggest VED increase of the Mazda range.
So if you are thinking of buying Mazda's leading family SUV, why not check out our current offers on the Mazda CX-5 today? You could be saving up to £750 before 1st April 2020.
View Mazda CX-5 Offer
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0% APR Finance On All Mazdas
New & In Stock
2.2d SE-L Nav+ 5 door Automatic Estate
Sandicliffe Ltd. trading as Sandicliffe are a credit broker (not a lender), we can introduce you to a limited number of carefully selected finance providers. We may receive a commission from them for the introduction.
2.2d Sport Nav+ 5 door Automatic Estate
2.2d Sport 5 door Estate
2.0 GT Sport Nav+ 5dr Estate
Retail sales only, subject to availability for vehicles registered between 01.10.20 and 31.12.20 at participating dealers. T&C apply. *0% APR Mazda Personal Contract Purchase available on all new Mazda models. At the end of the agreement there are 3 options: (i) Part exchange the vehicle. (ii) Pay the Optional Final Payment to own the vehicle or (iii) Return the vehicle. Further charges may be made subject to the condition or mileage of the vehicle. Finance subject to status, 18s or over. Guarantee may be required. Mazda Financial Services RH1 1SR. Channel Islands and Isle of Man excluded. Not available in conjunction with any other offer unless specified.
All information is correct at time of publication and is subject to change without notice. Not to be used in conjunction with any other offer. Vehicles available while stock lasts. Images shown for illustration purposes only, and may show optional specification. Subject to model and colour availability. Savings shown against manufacturer list price. No cash alternative available. For details ask your local Sandicliffe Mazda dealer.
Sandicliffe Ltd. trading as Sandicliffe are a credit broker (not a lender). We can introduce you to a limited number of carefully selected finance providers and may receive a commission from them for the introduction.
Consumer Experience 2020
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Sandicliffe Ltd. Registered in England and Wales No with company registration number
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Sandicliffe Limited is an Appointed Representative of Automotive Compliance Ltd,
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lender, for the introduction to a limited number of finance providers and to act as
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result whilst we can confirm the number of registered keepers we cannot confirm how many
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