Classic car owners could be slapped with hefty fines from the DVLA for making a major car tax mistake as Vehicle Excise Duty (VED) fees rise.
VED rates increased by just over six percent on April 1 with costs rising across the board for petrol and diesel owners.
The changes mean some road users who have purchased the most polluting vehicles could pay a whopping £140 a year more in VED rates.
Historic vehicle owners registered between 1984 and 2001 are judged on the size of their engine capacity with the highest rise just £20.
However, models registered before April 1984 will get away with paying VED charges due to the rolling historic vehicle tax exemption rule.
The policy states owners of cars at least 40 years old can apply for an exemption meaning they are not slapped with the same fees as other road users.
But, classic car owners must still remember to apply for the exemption every year or they could be caught out with hefty fines in place for those who forget.
Owners who have benefited from the exemption for a few years will likely know about the rules.
However, the rolling nature of the plan means more drivers are eligible every year meaning some may not be aware of how it works.
The DVLA will send motorists a vehicle tax reminder letter before their tax is due to expire.
Motorists will still need to provide the DVLA details so they can tax their vehicle but will crucially not pay any charges.
Those who simply assume they are not paying anything and don’t get a vehicle taxed will be breaking the law.
According to GOV.UK, road users could be issued a sizeable £80 fine if a vehicle is not taxed on time.
To apply for an exemption, motorists need to provide a log book V5C, a vehicle tax reminder letter, evidence of a current MOT and proof that a model should not be charged.
GOV.UK makes clear that motorists will then receive a refund back on any tax which they have overpaid.
Meanwhile, road user can still use a vehicle while an application is being processed which could be vital for those who rely on their car to get to work.
