How much road tax will you pay?

Road tax can be confusing, especially when the goalposts are being moved by the Government in a bid to promote greener motoring.

In March 2005 the focus shifted towards CO2 emissions as an incentive for buyers to purchase cars with lower emission ratings. In a nutshell the cleaner the car, the lower your Vehicle Excise Duty (VED) tax band and the less money you pay.

2014/15 Road Tax Rates

The 2014 budget has been announced and VED bands are pretty much staying the same but road tax is rising in line with inflation effective from April 1.

If you own a car with emissions under 100g/km your road tax is still free for the first year and subsequent years, while first-year rates for cars up to 130g/km stay free too.

Rises range from £5 for cars with CO2 emissions between 131g/km to 175g/km, while for cars with higher emissions than this the increase starts from £10 up to £25.

Finding out how much road tax you will be paying is an important part of family budgeting. By using the Parkers road tax calculator you can find out your first-year rate (applying to new cars) and your annual standard rate.

The new tax rates from 1 April 2014 are as follows:

VED Band CO2 Emissions Standard rate First year rate
A Up to 100g/km £0 £0
B 101-110g/km £20 £0
C 111-120g/km £30 £0
D 121-130g/km £110 £0
E 131-140g/km £130 £130
F 141-150g/km £145 £145
G 151-165g/km £180 £180
H 166-175g/km £205 £290
I 176-185g/km £225 £345
J 186-200g/km £265 £485
K 201-225g/km £285 £635
L 226-255g/km £485 £860
M Over 255g/km £500 £1,090

Farewell to the paper disc

Remember that from October this year you will no longer be required to display the paper tax disc in your windscreen.

First introduced in 1921, the government feels that the tax disc has now run its course with checks for the past few years being carried out electronically.

You can also pay now by monthly direct debit which will cost an extra five percent verses a single annual payment.