Road Tax FAQ 2025
Understanding road tax is essential for every vehicle owner. Whether you’re buying a new car or renewing your existing tax, this guide covers everything you need to know about Vehicle Excise Duty (VED), payment options, exemptions, and more. Read on to ensure your vehicle stays legally taxed and roadworthy.
1. What is road tax?
Road tax, also known as Vehicle Excise Duty (VED), is a mandatory tax imposed by the government on most vehicles used on public roads. The amount varies based on vehicle type.
2. How is road tax calculated?
Road tax rates depend on factors such as engine size (for older vehicles), CO2 emissions (for newer vehicles), and fuel type. Electric vehicles are usually exempt from road tax.
3. Do electric cars need to pay road tax?
As of April 2025, electric cars must pay the same rate of road tax as other vehicles (£195 per year).
4. When do I need to pay road tax?
Road tax must be paid annually, every six months, or monthly via Direct Debit. It must be renewed before expiry to ensure the vehicle remains legally roadworthy.
5. How do I pay road tax?
You can pay road tax online via the Gov.uk, at a Post Office, or by setting up a Direct Debit.
6. What happens if I don’t pay my road tax?
Driving a vehicle without valid road tax can result in fines, penalties, and potential vehicle clamping. The DVLA may also issue an automatic fine if the tax is not renewed.
7. Can I transfer road tax when selling a car?
No, road tax does not transfer with the car when it is sold. The new owner must tax the vehicle in their name before driving it.
8. Can I get a refund on my road tax?
Yes, if you sell your car, declare it off the road (Statutory Off Road Notification, or SORN), or it is scrapped, you may be eligible for a refund on any full remaining months of tax.
9. Is road tax included in my car purchase?
Some dealerships may include road tax in the purchase price, while others require the buyer to arrange it separately. Check with your dealer for details.
10. Where can I check if my vehicle is taxed?
You can check your vehicle's tax status on the DVLA website using your registration number.