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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 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!

Trust, Compliance & Small Print

All primary prices shown on this page ex VAT at the prevailing rate unless otherwise stated.

An excess mileage charge may be applied if the contracted mileage is exceeded. Full details will be provided within the written quotation.

You will not own the vehicle and it should be returned clean in a condition that is commensurate with its age and mileage, otherwise charges may apply.

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We are acting as a credit broker for the purposes of arranging your selected finance contract. We have a commercial relationship with a carefully selected panel of lenders and we may receive a commission from the selected lender. We do not charge you a fee for our credit broking services.

Central Contracts (S.O.T.) Limited.
Central House, Trentham Business Quarter, Bellringer Road,
Stoke-on-Trent, Staffordshire, ST4 8GB.

VAT Reg No. 715 25 1558 Company Reg. No. 3635778
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From April 2020 WLTP will replace the current NEDC test procedure for establishing the official Fuel Consumption and CO2 emissions of new cars. Please be aware of the following:
For vehicles registered on or after 1st April 2020 vehicle road tax costs will be based on the WLTP CO2 values and may change the monthly rental cost.
Vehicles registered on or after 6 April 2020 Please be aware the addition of certain factory fitted options may impact the vehicles co2 emissions and affect your monthly rental.

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