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THE AA IS WARNING THAT THE AVERAGE UK CAR OWNER COULD BE PAYING MORE THAN £650 PER YEAR IN FUEL DUTY AND ROAD TAX 13:47, 21 Apr 2025 Drivers face having to pay £650 to stay on the road.
Vehicle Excise Duty is linked directly to your car, van or motorhome and the cost varies depending on vehicle age, list price and CO2 emissions, drivers and road users are warned. The
different rates are known as car tax bands, road tax bands or VED bands. The AA is warning that the average UK car owner could be paying more than £650 per year in fuel duty and road tax
after the shake-up under the Labour Party government. If your car was registered on or after 1 April 2025 then there are 2 different payments. The first payment or “showroom tax” is based on
the official CO2 figures when the car was built. It’s followed by an annual renewal based on the fuel type. Article continues below READ MORE 14 COUNTIES IN ENGLAND SET TO ROAST IN NEW UK
MINI-HEATWAVE NEXT WEEK As well as this, there's a premium for vehicles with a list price of over £40,000. This now includes zero emission vehicles. If it was registered between 1 March
2001 and 31 March 2017 then you'll pay based on the car's official CO2 emissions and fuel type. If your car was registered before 1 March 2001 then the tax you pay will depend on
the engine size. This has increased slightly in the latest budget. For cars over 40 years old, there's no tax to pay. As of 1 April 2020, all cars built before 31 March 1980 are tax
exempt, but still need to be registered with the DVLA. You could be fined if you fail to tax your vehicle, the AA has reminded drivers. That means a fine of £80, but halved if paid within 28
days. Article continues below Even if your car tax is £0, you still need to re-tax your vehicle every year to avoid a fine. You could also be fined if you don’t pay and the case goes to
court. Then the fine can be up to £1,000. You may also be required to pay the outstanding VED back to when it was last taxed or SORN. You can check the tax status of any vehicle – all you
need is the vehicle’s make and registration number.