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Overview

Whether an individual is in a HGV or a hatchback, a monster truck or a motorbike – DNS Accountants will get the vehicle tax sorted in no time.
Vehicle tax First, the following will be required:

  • V85/1 for a Heavy Good Vehicle (HGV)
  • V5C logbook
  • V5C/2 if the vehicle has just been bought

If an individual doesn’t have any of these, then they need to apply for a fresh V5C. He / she will be required to fill out a V62 form, which can be purchased at a cost of £25. Additional documents required are:

  • A valid MOT – it has to be valid from the date the vehicle tax begin or the date the vehicle tax was issued, whichever is later
  • A valid Exemption Certificate – if an individual claims disabled vehicle tax
  • A legitimate Reduced Pollution Certificate – if the vehicle has been customized for reduced pollution
  • A valid GVT or PSVC – if either of these is required, it will be mentioned on the vehicle tax reminder

If an individual is in Northern Ireland, he / she will need to have a valid paper copy of either the certificate of insurance or a cover note. The insurance needs to be valid from the date the vehicle tax began or the date the vehicle tax was issued, whichever is later.

How to pay

To pay, there are plenty of options available:

  • Credit Card (handling fee of £2.50 to pay for car tax with a credit card applicable)
  • Cheque payable to Post Office Limited
  • Postal Order
  • Debit card
  • Cash (but not by post)
  • Sterling travelers cheques
  • Direct Debit
  • Post Office Budget Card

If an individual is planning to take the vehicle off the road, he / she has to declare SORN. This can be done using V11 tax reminder or V5C Registration Certificate.

Tax Rate

The rate of vehicle tax depends on when the vehicle was first registered.

  • If the vehicle was registered before 1 March 2001, the vehicle owner pays according to engine size.
  • If the vehicle was registered on or after 1 March 2001, the vehicle owner pays according to carbon dioxide (CO2) emissions and type of fuel used

The table below will help to understand the payable tax and the rates apply from 1 April 2015

Vehicles registered on or after 1 March 2001

Type of vehicle 12 Months 6 Months
Light Goods Vehicles    
All Vehicles
Band A (up to 100g/km)*
£230.00 £126.50
Diesel Car/Petrol Car Nil Not available
Alternative Fuel Car Nil Not available
Band B (101 - 110g/km)*  
Diesel Car/Petrol Car £20.00 Not available
Alternative Fuel Car £10.00 Not available
Band C (111 - 120g/km)*    
Diesel Car/Petrol Car £30.00 Not available
Alternative Fuel Car £20.00 Not available
Band D (121 - 130g/km)*    
Diesel Car/Petrol Car £110.00 £60.50
Alternative Fuel Car £100.00 £55.00
Band E (131 - 140g/km)*    
Diesel Car/Petrol Car £130.00 £71.50
Alternative Fuel Car £120.00 £66.00
Band F (141-150g/km)*    
Diesel Car/Petrol Car £145.00 £79.75
Alternative Fuel Car £135.00 £74.25
Band G (151-165g/km)*    
Diesel Car/Petrol Car £185.00 £101.75
Alternative Fuel Car £175.00 £96.25
Band H (166-175g/km)*    
Diesel Car/Petrol Car £210.00 £115.50
Alternative Fuel Car £200.00 £110.00
Band I (176-185g/km)*    
Diesel Car/Petrol Car £230.00 £126.50
Alternative Fuel Car £220.00 £121.00
Band J (186-200 g/Km)*    
Diesel Car/Petrol Car £270.00 £148.50
Alternative Fuel Car £260.00 £143.00
Band K (201-225g/km)*    
Diesel Car/Petrol Car £295.00 £162.25
Alternative Fuel Car £285.00 £156.75
Band L (226-255g/km)*    
Diesel Car/Petrol Car £500.00 £275.00
Alternative Fuel Car £490.00 £269.50
Band M (Over 255g/km)*    
Diesel Car/Petrol Car £515.00 £283.25
Alternative Fuel Car £505.00 £277.75

*These bands represent the CO2 emission levels for each band of vehicle

Vehicles registered before 1 March 2001

Type of vehicle 12 Months 6 Months
Private/Light Goods Vehicle (goods vehicles not over 3,500kg revenue weight)    
Not over 1549cc £145.00 £79.75
Over 1549cc £235.00 £129.25
Motorcycles  
Not over 150cc £17.00 Not available
151cc up to 400cc £39.00 Not available
401cc up to 600cc £60.00 £33.00
Over 600cc £82.00 £45.10
Tricycles (including 3 wheeled cars not over 450kg)    
Not over 150cc £17.00 Not available
All other tricycles £82.00 £45.10
Vehicles in Disabled Tax Class Nil Nil
Historic Tax Class Nil Nil

Vehicles registered between 1 March 2003 - 31 December 2006

Type of vehicle 12 Months 6 Months
Light goods vehicles that meet the EURO 4 standard £140.00 £77.00
Other vehicles  
Rates of vehicle tax for light goods vehicles meeting Euro 4 and Euro 5 emission standards, lorries and other vehicles are listed in leaflet V149

Post April 2017

Post April 2017, car tax will change for new cars bought. The first year rates will change based on the carbon dioxide emissions of the vehicle and there will be a flat standard rate of £140 for all cars except those emitting 0 grams of carbon dioxide per kilometer, for which the standard rate will be £0. Cars with a list price above £40,000 will attract a supplement of £310 per year for the first five years in which the standard rate is paid.

How DNS Accountants Can Help

DNS Accountants is a trusted brand and has years of knowledge in the accounting and taxation domain. The firm has been helping individuals with vehicle tax and other taxation related queries. The team at DNS comprises of learned taxation professionals and ACA’s or Chartered Accountants (CA). The firm focuses a lot of customer service & believes in delivering unmatched client service. DNS Accountants offers:

  • services at a nominal rate
  • best-in-class accounting and tax planning services
  • HMRC inheritance tax planning and taxation advice

The team at DNS Accountants are committed to making our clients tax experience as trouble-free as possible. Vehicle tax relief is just one of many tips we offer our clients at DNS Accountants. If individuals are looking to save additional money, our learned team of taxation professionals will guide you. Also, our online cloud-accounting software – Nomisma Solution can be used to discover new ways of filing the returns; know what expenses will help to lower the tax bill and keep all the records online, and secure. DNS Accountants provide accounting and taxation services to owner-managed-businesses and self employed individuals – freelancers / contractors. DNS Accountants expert team of chartered accountants (CAs) and ACAs help clients in services ranging from accounting to payroll management to tax preparation and filing.

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