Older petrol and diesel vehicles registered before 2001 will be hit by Vehicle Excise Duty (VED) car tax rises within weeks.
Andy Wood, spokesperson for Tax Natives, confirmed road users would be slapped with “potential increases” from April as VED rates rise.
Those who don’t pay the standard rate will usually have charges calculated based on their car’s overall vehicle emissions.
However, charges for older cars registered before 2001 are worked out based on the size of their engines with bigger models liable to pay more.
Andy said: “For cars registered before March 1, 2001, tax rules differ significantly. Instead of CO2 emissions, taxation is based solely on engine size.
“Vehicles with engines under 1.5 litres (specifically ‘not over 1549cc’) incur an annual tax of £200, while larger engines are taxed at £325.
“Verifying engine specifications when considering older vehicles is essential, as rates may vary. These rates are subject to potential increases, likely from April 2024.”
VED rates are set to increase in line with Retail Price Index (RPI) inflation from the beginning of next month.
Finance experts at Pete Barden have predicted charges will rise by six percent overall. However, the group have made individual predictions with charges for older models also affected.
According to the specialists, motorists with an engine size of 1549cc and below will pay £210 from April, £10 more than current charges.
Those with engines above 1549cc will pay £345 from April 1, up £20 on the £235 fees drivers face today.
HM Revenue and Customs (HMRC) have previously confirmed the rates were going up to ensure tax receipts were “maintained in real terms”.
Chargers were also being updated to make sure “motorists make a fair contribution to the public finances”.
They stress the measure is not expected to have any “significant economic impacts” as the fees remain unchanged in real terms.
However, they accepted the move would likely have an impact on those owning a car, van or motorcycle.
Classic car owners will also be exempt from tax charges as long as their vehicles are older than 40 years.
Models registered after 1984 will be able to register for a historic tax exemption and avoid paying any VED fees whatsoever.
