Car tax warning as owners handed three tips to avoid £1,807 hike coming in months




The hefty increases could be a major blow to cash-strapped road users who rely on their vans for work.

However, Tom Banks, motoring expert at Go Compare warned there were some simple ways road users could cut back on the sting come April.

Firstly, they stress switching to a cleaner model could be the easiest way to save money although cutting back on costs elsewhere was also tipped as a way around price hikes.

Tom said: “If you can’t buy a suitable hybrid or electric van, you could go for a ‘nearly new’ one instead. This lets you enjoy a vehicle that’s pretty much as good as new without breaking the bank and means you can dodge the increased tax.

“Failing this, see if there are any other ways you can reduce your motoring spending to counteract the higher tax.

“Comparing van insurance policies might help you find a provider offering the same amount of protection for less, and finding new ways to maximise your fuel economy could help to cut costs further.”

Go Compare has claimed van drivers will pay an extra £15.5 million over the first six months of the new tax year if 2024 sales patterns continue.

The analysis from Go Compare van insurance analysed data from the Department for Transport.

They looked over privately owned van registrations in the first half of the 2024 tax year and then applied new VED rates to determine how much road users could pay from April.

Chancellor Rachel Reeves confirmed first-year rates would rise from Spring 2025 in her Autumn Budget statement.

HMRC confirmed fees were updated to “widen the difference between zero-emission, hybrid and internal combustion engine cars”.



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Posted: 2025-01-09 15:42:35

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