DRIVERS have been issued an urgent warning after hundreds of thousands were slapped with fines over a little-known road tax change.
Over 700,000 motorists have had to cough up penalty charges for their vehicles not being road legal, according to the latest figures.
GettyDrivers have been warned about the risk of fines following a change to vehicle tax rates[/caption]
New data obtained by experts at Wagonex reveal the effect of the government’s decision in April’s Spring Budget to increase the annual rate of Vehicle Excise Duty (VED) by £15.
This saw the price of keeping your motor on the road rise to £180 every year.
As of October, a total of £74 million worth of fines have been issued to 700,000 drivers.
This represents an increase of £4 million shared between an extra 15,000 compared to the six months before the change.
The figures also showed that the average fine cost road users a whopping £570.
All drivers are required to pay at least the basic rate of VED, with a £10 discount for alternatively fuelled vehicles such as hybrids.
The first year of tax is included in the car’s on-the-road price when it’s purchased new and ranges from free to £2,605 depending on its emissions rating.
However, if your car is worth more than £40,000, you are also required to pay an annual £390 supplement for five years after the first year.
After that, you go back to paying the basic rate.
Electric cars are currently exempt from VED, but that is ending on April 1, 2025.
Toby Kernon, CEO of Wagonex, said: “With so many things available at the touch of a button these days, and costs across the board rising, it’s easy to put off the dreaded admin tasks that come with owning or financing a car.
“The reality is that while sometimes time-consuming, this admin is a legal necessity, and those who do miss their car tax renewal could be risking a fine of up to £1,000.
“If you are unable to pay your VED tax, you will receive an email from the DVLA, and they will attempt to take the money you owe within four days.
“If this fails again, your car will no longer be taxed and could receive a fine.”
In the event that you are unsure whether your car is still taxed, you can easily check online, simply search “DVLA registration check” and enter your registration on the gov.uk website.
Mr Kernon added: “Ensuring your car is fully up to date with tax payments is crucial – it is a legal requirement, and it helps fund road maintenance, research, and public transport, including road works and maintenance.
“However, with the ongoing cost of living crisis, it’s becoming more of a concern that drivers are missing these payments, often without even realising.”
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