Three reasons you don't have to pay car tax – see if you're eligible | The Sun

DRIVERS can legitimately avoid paying car tax as rates are set to rise within weeks, a motoring expert has revealed.

Spring Budget documents reveal Vehicle Excise Duty (VED) is set to be hiked by 10.1% from April 1 for cars, vans and motorbikes.

There is some good news for the haulage sector, as road tax for HGVs will remain frozen for 2023/24.

But that still means millions of motorists will be stung from next month.

Of course, the exact amount extra you will pay depends on what you pay now.

But if you pay £150 now, you will have to pay £165.15. If you pay £230 now this will spike to £253.23.

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That said, there are some scenarios where you can get out of paying the tax.

The Sun spoke to Ryan Fulthorpe, motoring expert at price comparison website Go Compare, who shared three.

He said: "With the news that Vehicle Excise Duty – also known as ‘road tax’ or ‘car tax’ – is due to rise on April 1, many car owners might be wondering if there’s a way to limit the cost."

You are a disabled driver

If you are a disabled driver you are exempt from car tax.

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What classes you as being disabled is if you receive the following benefits:

  • Higher rate mobility component of Disability Living Allowance (DLA)
  • Enhanced rate mobility component of Personal Independence Payment (PIP)
  • Enhanced rate mobility component of Adult Disability Payment (ADP)
  • Higher rate mobility component of Child Disability Payment
  • Pensioners’ Mobility Supplement
  • Armed Forces Independence Payment

You can also get a 50% vehicle tax reduction if you receive the:

  • PIP standard rate mobility component
  • ADP standard rate mobility component

The vehicle must be registered in the disabled person’s name or their nominated driver’s name.

Meanwhile, it must only be used for the disabled person's personal needs and can't be used by the nominated driver for their own personal use.

You are also exempt from paying vehicle tax if you use a vehicle to drive disabled people from one place to another, like a shuttle bus.

Plus, mobility vehicles and powered wheelchairs are also exempt.

This is if they have a maximum speed of 8mph on the road, or are fitted with a device that limits them to 4mph on footways.

Ryan said: "It may also be worth checking if you’re eligible for a car tax exemption.

"You can apply for an exemption for a number of reasons."

Having a 'historic' vehicle

Any vehicle made before January 1, 1982, is exempt from paying road tax.

But you are also exempt if your vehicle was registered before this date.

You have to register a car as soon as you've bought it, built it, rebuilt or altered it, or imported it.

You can do this by filling in a number of forms which you then need to send to the DVLA.

You can find the forms online by typing "vehicle registration gov" into Google.

You can pay more or less car tax depending on the age of your vehicle as well.

Ryan said: "For cars registered after March 2001 and before 2017, your rate depends on the C02 emissions of your vehicle, with lower emissions meaning less to pay in VED.

"When it comes to newer cars, registered after April 1, 2017, the rate of road tax you pay also depends on your car’s emissions, but there is a separate tax band system, with only 0% emission cars being exempt from VED."

If your vehicle is electric

Car tax is calculated based on the amount of emissions your car produces.

But because electric vehicles don't produce emissions, you don't have to pay excise duty on them.

But you still have to meet certain criteria. The electricity must come from any of the following:

  • An external source, such as a private or public chargepoint
  • An electric storage battery not connected to any source of power when the vehicle is moving
  • Hydrogen fuel cells

If you own a hybrid vehicle you will have to pay vehicle tax on it.

Ryan said: "If you are keen to limit the price of your car tax, then think carefully about your choice of car.

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"If you are planning to change your vehicle, opting for a model with lower emissions will certainly help cut your VED costs, as well as having an environmental benefit.

"Being wary of your car’s list price – and staying below £40,000 – will also help ensure you aren’t liable to pay any additional fees in the first few years of ownership."

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