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UK citizens and permanent residents are subject to annual taxes. Whether it be on your income, property, or vehicle -- you should always stay apprised of your tax burden and pay it on time. Cars owned and driven in the UK are taxable for every year that they continue to be actively used. UK tax brackets for cars are different than the brackets established for income or other forms of property. Your vehicle's fuel type and CO2 emissions are among the most important factors to consider when you are determining the taxes you owe on your car. Registered Before 1 March 2001 Cars that were originally registered before this date are subject to different rules than cars that were registered more recently. If your vehicle has an original registration date that precedes 1 March, 2001 -- you are in one tax bracket when the engine is smaller than 1549 cubic centimetres (cc), and another bracket when the engine is larger than 1549 cc. Cars with larger engines are assessed taxes that are approximately 100 pounds more expensive, as of 2013. Fuel Type Cars that were registered after 1 March, 2001 are put into brackets based on the type of fuel that is used in the car and the emissions of the engine. Petrol and diesel based cars are put into the same tax category. Cars that use an alternative fuel -- anything other than petrol or diesel -- are in another category. There are 13 total brackets, called bands, that are labeled A through M. Each fuel category has it's own set of brackets. Once you have determined which category your fuel falls into, you need to know how much your emissions amount to. CO2 Emissions The tax bands within each fuel category are divided by the amount of CO2, or carbon, emissions that your vehicle puts out. For instance, less than 100 grams of carbon per kilometre (g/km), will earn you a spot in the "A" tax band and you will pay no tax on your car. All other bands pay at least some tax, with each higher band paying an increase of between 20 and 40 pounds. You can pay taxes on a 12 month or 6 month basis. You will pay less if you agree to pay taxes on a 12 month basis in a single payment. First Year Rates Some tax bands require a higher initial tax rate for the first year that a car is registered. This only applies to cars that were first registered on or after 1 April, 2010. Tax bands that are A through G usually do not require an additional tax the first year, while cars in other brackets will pay anywhere from an additional 10 pounds to more than 500 pounds. Cars that use an alternative fuel will still have to pay an increase in first year taxes for certain tax brackets, but the increase is slightly lower. Tax Rate Tools for Vehicle Owners Memorizing the tax bands is not a necessary or realistic task for most UK drivers. Fortunately, there are several online tools that allow you to check which tax bracket you belong to so you can plan your taxes accordingly. The official UK government site offers tax tables for vehicles at gov.uk/vehicle-tax-rate-tables. The Gov.uk site also has a tool that lets you enter the details about your car's engine and emissions; the tool then generates the answers to your questions about which tax bracket you belong you and how the required fees are currently set. UK tax brackets are set for only one year at a time, so even if your car is in one tax band now, it could change in April when a new tax year begins. Your vehicle taxes must be paid, or you could incur serious fines or even a court date. Even if the taxes seem high, these costs are minimal when compared to what you will face for failing to pay the dues in a timely fashion. If you alter your engine in any way and the carbon emissions change, or if the engine produces more carbon as it ages, you may move to a new tax bracket. If you want to know more about uk tax brackets the author Sam Jones suggests visiting the help and advice pages at uSwitch.com.
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