VED is a legal requirement with the amount road users have to pay usually depending on the type of vehicle they own and when it was registered. Petrol and diesel owners usually pay VED fees based on a sliding scale of prices depending solely on emissions.
Highly polluting models pay the highest fee, with those emitting over 255g/km if CO2 charged up to £5,490 to use the roads. Vehicles produced after 2017 pay a standard rate that currently sits at a flat rate of £195.
Meanwhile, electric cars were charged VED fees for the first time in 2025 after years of being exempt from the costs. Those with the keys to expensive models with a list price of over £40,000 are also liable for extra fees under the Expensive Car Supplement.
This currently sits at an extra £425 charge between the second and sixth years of a vehicle’s lifespan, adding to running costs. Motorists can pay for their VED road tax online, over the phone, or in person at a Post Office branch.
Road users can pay for their VED fees either upfront or in installments to help spread the cost over the course of a year.
The RAC said: “When it comes to owning and running a car, one of the most essential tasks every driver must undertake is paying for car tax.
“While this responsibility is often seen as just another part of vehicle ownership, understanding how to properly tax your vehicle is crucial to ensuring compliance with the law and avoiding penalties.”