Vehicle tax (also known as VED, or Vehicle Excise Duty) is an annual tax that pretty much all UK drivers – if you drive or park on public roads – must pay (with some exceptions).

This tax goes into a centralised government fund, some of which is spent on the development and maintenance of the UK's highways infrastructure.

On a basic level this means re-surfacing and repairing potholes, it also means development of new roads and route improvement more generally.

The amount you pay for your car’s tax depends on its CO2 emissions. The more CO2 emissions it emits, the higher the charge.

You can work out how much tax you’ll pay by looking at the government’s tiered band system. The current annual rates for petrol or diesel cars registered on or after 1st March 2001 and before March 31st 2017 are:

Band A: £0Band B: £20
Band C: £30
Band D: £135
Band E: £165
Band F: £180
Band G: £220
Band H: £265
Band I: £290
Band J: £330
Band K: £360
Band L: £615
Band M: £630

For petrol and diesel cars registered on or after April 1st 2017, bands are as follows (diesel charges vary depending on whether the vehicle meets RDE2 standards:

0g/km: £0
1 to 50g/km: £10 - £25
51 to 75g/km: £25 - £120
76 to 90g/km: £120 - £150
91 to 100g/km: £150 - £170
101 to 110g/km: £170 - £190
111 to 130g/km: £190 - £230
131 to 150g/km: £230 - £585
151 to 170g/km: £585 - £945
171 to 190g/km: £945 - £1,420
191 to 225g/km: £1,420 - £2,015
226 - 255g/km: £2,015 - £2,365
Over 255g/km: £2,365

The tiered band system favours the development of newer, cleaner, more eco-friendly electric and hybrid vehicles. It deters drivers from owning or leasing vehicles with high emissions rates. More and more bands have been introduced to the system over the years to keep up with the way cars are evolving.Alternative fuel vehicles are subject to different tax rates. You can check the latest costs on the gov.uk website.

You face fines if you don’t pay car tax. The DVLA takes serious action against those who don’t pay, and you’ll be given an £80 fine on the spot. This gets reduced to £40 if it’s paid in 28 days.

Using an untaxed vehicle on a public road without a Statutory Off Road Notification (SORN), results in an out-of-court settlement letter (OCS). You’ll receive a £30 penalty plus one and a half times the outstanding vehicle tax. So, the longer you’ve driven without tax, the higher your fine.

If you ignore the OCS letter, the penalty could increase to £1,000 or five times the amount of tax chargeable. Your vehicle is also likely to be clamped.

Using an untaxed vehicle on a public road with a SORN results in a heftier fine. You’ll receive a £30 penalty plus twice the outstanding vehicle tax.

Some vehicles are exempt from having to pay vehicle tax. Owners still need to apply for tax – but don’t have to pay.

List of exemptions:
Vehicles used by a disabled person
Disabled passenger vehicles (vehicles used as transport for disabled people)
Mobility scooters and powered wheelchairs (must have a maximum speed of 8 mph)
Historic vehicles (vehicles made before 1st January, 1981)
Electric vehicles (must be powered from an external source or battery storage)
Mowing machines (must be designed for cutting grass, tractors are excluded)
Steam vehicles
‍

You can legally own an untaxed vehicle, but it needs to be registered as ‘off the road’ – otherwise known as SORN (Statutory Off Road Notification). You can apply for this online.

Just remember that a SORN vehicle can’t be driven on public roads – not even parked. You must leave a SORN vehicle on your private property, like a driveway or garage.

You must register a vehicle as SORN if:
Your vehicle is not legally insured
You’re planning to scrap your vehicle for parts
You purchase a vehicle but want to keep it off the road for now

Caura automatically syncs with the DVLA and tells you when your tax is going to expire. You'll receive notifications (email and in-app) in plenty of time, you no longer need rely on receiving a paper reminder through the post.

Pay your car tax with Caura every 6 or 12 months, you can use your V11 or your V5C to renew. You can pay via Apple of Google pay, or via credit card if you prefer, it takes a few seconds to get sorted.

We’re regulated by the Financial Conduct Authority (FCA) and work closely with the DVLA, so you can have peace of mind when you renew via Caura.