Car tax changes coming into effect in 2022 will see both petrol and diesel drivers hit by new charges.
From this spring, motorists will be affected by an increase in Vehicle Excise Duty (VED) – while new Benefit in Kind (BiK) changes and Clean Air Zones will also be introduced, creating further fees for some road users.
Owners of the most polluting petrol and diesel vehicles will pay more as a result of the changes, Wales Online reports.
VED charges are expected to increase for almost all emissions ranges, with those producing more pollution set for the highest rises.
Here are the changes affecting drivers in 2022:
Vehicle Excise Duty (VED)
VED, often called road tax, is rising with the retail prices index measure of inflation in April.
Vehicles that emit zero grams per kilometre of CO2 are expected to continue paying zero, while petrol- and most diesel-powered drivers (including hybrids) that emit between 1g and 50g per kilometre will pay £10 for the first 12 months.
Cars that emit between 51g and 5g per kilometre currently pay £25 for the first year.
Cars that emit between 76g and 150g per kilometre of CO2 saw their VED rates rise by £5 this year – to £220.
The more CO2 a car emits per kilometre, the more you are likely to pay next year.
The worst affected are usually cars that emit more than 255g per kilometre of CO2 – these currently set you back £2,245 a year in tax – it then rises each April.
You can find out how much you’re currently paying, here.
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The standard rate – the amount you pay after the second year – for cars registered on or after 1 April 2017 is currently £155 a year for anything other than zero-emissions vehicles.
HM Revenue and Customs said the update would “impact motorists owning a car, van or motorcycle”.
It said the increase in VED rates was in-line with RPI meaning rates will “remain unchanged in real terms for vehicle owners”.
Benefit in Kind
Rates for those hiring a car under a salary sacrifice scheme are also set for new charges in 2022.
BiK rates will rise from one to two percent for fully electric cars and those producing between one and 50g/km of pollution with an electric range of more than 130 miles.
Prices will also increase by one percent for all other models regardless of pollution levels.
However, vehicles that produce 156 to 169g per km or over 170g per km will see no changes with fees remaining at 37 percent.
Clean Air Zones
Birmingham, Leeds, Newcastle & Manchester are the latest cities to latest to announce clean air zone charges.
Bradford’s charge will not apply to private cars and motorbikes even if drivers use them for work.
Minibuses and LGV such as vans will have to pay £9 per day to use the zone while HGV’s will pay £50.
Greater Manchester’s Clean Air Zone has a launch date set for 30 May 2022 in a bid to clean up pollution levels.
The new charge will also not affect private cars, motorbikes and mopeds but HGV’s, buses and taxis will be forced to pay from launch.
Vans and minibuses will get a one year reprieve as charges for these vehicles will not begin from June 2023.
Bradford Council said of the change: “A Clean Air Zone (CAZ) is a defined area where targeted action is taken to improve air quality. Through the use of a daily charge for entering the zone, the council will encourage affected vehicle owners to consider upgrading their vehicles to compliant standards.”
It said all money collected would be “invested in measures which improve air quality in the district”.
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