Vehicle Excise Duty formally known as Car Tax

Road tax/vehicle excise duty is a fee which must be paid annually or half every 6 months. In order to drive or park on the road in Britain you must pay this fee which will vary from vehicle to vehicle. Once it has been paid you will receive a tax disk which must be displayed in the window of your vehicle at all times.

Why do we pay road tax and why was it started?

Vehicle excise duty was first introduced in the budget of 1888. The current system which still stands was first made compulsory in 1920. The money collected from motorists was paid directly into the Road Fund which built roads across the country up until 1937 where it changed to be classed as general taxation. The Road Fund was also known for funding other government purposes which may be why it wasn’t too popular. The actual Road Fund was not abolished until 1955 as it was still funded by government grants rather than people paying directly to the fund.

Overview on road excise duty / road tax

Some cars do not even require any road tax because of how economical they are. If you want to save money on petrol and also car tax then choosing a greener car is a step in the right direction for your bank balance.

If you need to tax your vehicle but do not have a clue where to start then visit gov.uk which has bags of information on how to get started. Other information it features on the site includes how to declare your car SORN (Statutory Off Road Notice) and also apply for a HGV licence form if you are looking to drive a larger vehicle to name a few topics.

Alternatively if you know of a vehicle which does not have any road tax and you would like to report it anonymously you can also do this via the website.

When leasing a vehicle you will be happy to know that car tax is included in the leasing agreement so you don’t have to remember to pay for it every year. A tax disk will be sent to you each year, hurrah!