A motoring expert has explained how petrol and diesel owners can avoid paying one part of the new Vehicle Excise Duty (VED) car tax increase from April 2024.
Some owners of brand-new combustion vehicles are forced to pay an Expensive Car Supplement (ECS) charge on top of their standard VED rates every year.
Drivers who own a petrol or diesel car under seven years old and above £40,000 in value are affected by the heavy charge.
This added charge will also rise from the Spring when VED rates increase with Retail Price Index (RPI) inflation.
Last year, the ECS fee was set at £390 extra per year but will increase to £410 from April 1.
Standard VED rates for models built post-2017 are set to increase from £180 to £190 meaning the total yearly cost for vehicle owners will be around £600.
Paul Daly, Director of InsureDaily.co.uk stressed there is only one workaround for those desperate to avoid added ECS costs.
Speaking to Express.co.uk, Paul commented: “The only way to avoid or reduce some of these charges is to reconsider the type of vehicle you drive, with the vehicles with lower emissions getting to lower charges in the longer run.
“It would be wise, if your vehicle is close to the £40,000 valuation for the ECS limit, not to purchase ‘extras’ with the car that will push it over the barrier and trigger charges.”
Those who have purchased brand new petrol or diesel vehicles will be hit with staggering bills in year one.
The first-year rates for the most polluting models, emitting over 255 g/km of CO2 will pay £2,745, a massive £140 rise on the £2,605 fee in 2023.
Cars which produce between 226 and 225 g/km of CO2 will be issued a £2,340 charge in 2024 compared to just £2,220 last year.
This will also be paid on top of the ECS charge sending the total bill to well over £3,000 for many owners.
HM Revenue and Customs (HMRC) have accepted the changes will have an “impact on motorists” owning a car, van or motorcycle.
However, they stress the increase is simply in line with the RPI rate and therefore remain unchanged in “real terms”.
HMRC added: “Increasing VED rates by RPI in tax year 2024 to 2025 will ensure that VED receipts are maintained in real terms and that motorists make a fair contribution to the public finances.”
