Professional Transport Services

Road Tax Changes for 2022

10 Jan 2022

New car tax fees will be introduced from spring 2022.  Both petrol and diesel owners will see changes to the Vehicle Excise Duty (VED), more commonly known as Road Tax, whish could see some paying up to £130 extra.

The changes will increase the VED for vehicles in almost all emissions ranges, with owners of the most polluting vehicles, petrol and diesel, seeing the highest increases.

Vehicles that produce more than 255g of CO2 per km will see their first-year rate go up from £2,245 to £2,365.

While vehicles that produce between 226 and 255g per km will see their VED rise from £1,910 to £2,015.

Those producing between 76 and 90g per km will see a first-year rise of just £5 extra to £120.

Cars below this will see no changes to fees, with electric cars remaining at £0.

Benefit in Kind, the rates for people hiring a car under a salary sacrifice scheme will also be changed in 2022 with rates rising 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 models regardless of pollution levels.  Vehicles that produce 156 to 169g per km or more than 170g per km will see no changes - with the fees remaining at 37 per cent.

In addition, the clean air zones, two of which have been confirmed for launch this year, Bradford and Manchester will add to costs.  They will be slightly different to London's ULEZ with Bradford's charge not applying to private cars and motorbikes, even if drivers use them to work.  Minibuses and LGV such as vans will have to pay £9 per day to use the zone, while HGVs will pay £50.

Greater Manchester's Clean Air Zone has a launch date set for May.  The new charge will also not affect private cars, motorbikes, and mopeds, but HGVs, buses, and taxis will be forced to pay from launch.  Vans and minibuses will get a one-year reprieve for the charges and will begin from June 2023.

Source: Leicestershirelive