Petrol and diesel drivers with older motors warned of tax increase within weeks

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TAXING ISSUE

This will see payments for most drivers increase by the RPI rate of inflation - likely around 6 per cent.

“Vehicles with engines under 1.5 litres incur an annual tax of £200, while larger engines are taxed at £325. HMRC has previously confirmed the rates are increasing to make sure the levies remain the same in real terms.The newest, introduced in 2017, is itself split into two rates - one for your first year on the road based on emissions and then a second for after the first year based on the cost of the car.

 

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