In order to run a registered car or vehicle in the UK you must pay tax. Road Tax greatly depends on the type of car you own, the kind of fuel it uses and the amount of emissions it gives. Throughout this article we will look at the very basic car tax information you should know.
Firstly we will look at the documentation you will need in order to register your car for tax.
• A MOT certificate- if the car is older than 3 years
• A completed V10 or V11 form
• The vehicles registration certificate
• Proof of your insurance policy
• A means of Payment
It is important to make sure that your vehicle registration certificate and MOT certificate are both valid on the date that you wish for your car tax to commence. Failure to ensure the validation of both of these documents will result in you being unable to tax your car.
Car Tax is judged based on the CO2 emissions that your car produces. In the UK there are 13 Tax Bands that your car will fall into, they range from A (The lowest) to M (The Highest). Each band is categorized by the amount of CO2 produced measured by gallon per Kilometre. Smaller, more fuel efficient vehicles will cost less to tax and in some cases may not even cost anything.
Once registered you will be supplied with a car tax disc and must be displayed at all times. The disc should be placed on the passenger’s side of the windscreen and be in full view, without obstruction at all times. Failure to correctly display an in date Tax disc carries a penalty fine of £200.
When selling or scrapping a vehicle you must alert the DVLA (Driver and Vehicle Licensing Agency) as you will still be liable to pay for the vehicles tax. You should send off the appropriate part of your registration certificate to the DVLA at the first instance of your circumstances changing.
Another car tax issue that is often over looked is Company Car Tax. If a company supplies you with a company vehicle you will be liable to pay car tax, or as it is often referred to, benefit-in-kind tax. There are many ways to judge the rate of tax that you will be responsible for paying, but the easiest and most common method is by using a Car Tax Calculator. This feature can be found on many respectable car dealer sites, and will accurately calculate the amount of tax you can expect to pay.
Car Tax is extremely important; failure to tax your vehicle will result in an automatic penalty of £80 as well as a minimum fine of £1000. In addition, your vehicle could be seized, impounded or even destroyed.