A string of new changes for drivers will come into force this year – starting with car tax on April 1.
It will be joined by new clear air charges, a mobile phone ban and a potential new pavement parking fine, the Department for Transport has warned.
Elsewhere, learner lessons are set to resume on April 12 in England, with theory tests to follow on April 22.
It comes after the Chancellor froze fuel duty for the tenth year running, but warned road tax would rise in line with inflation from April.
Increasing Vehicle Excise Duty (VED)
VED, often called road tax, is rising in the new tax year which means you’ll have to pay more to keep driving your car.
As before, the amount of tax you’ll pay will depend on your new car’s CO2 emissions. Those that emit zero grams per kilometre of CO2 will pay zero, while petrol- and most diesel-powered drivers (including hybrids) that emit between 1g and 50g per kilometre will pay £10 for the first 12 months.
Cars that emit between 51g and 5g per kilometre will continue to pay £25 for the first year.
However, cars that emit between 76g and 150g per kilometre of CO2 will see their VED rates rise by £5 this year – to £220.
The more CO2 a car emits per kilometre, the greater the increase in road tax for 2021.
The biggest step-up in VED applies to cars that emit more than 255g per kilometre of CO2. These will set you back £2,245 to tax for the first year, up from £2,175 in 2020.
The standard rate – the amount you pay after the second year – for cars registered on or after 1 April 2017 will be £155 a year for anything other than zero-emissions vehicles.
Purchase tax on new petrol and diesel vehicles
In an attempt to make Britain’s streets greener, the UK Energy Research Centre (UKERC) have proposed a new ‘purchase tax’ specifically targeted at new petrol and diesel owners.
The premium would be aimed at those buying less environmentally-friendly vehicles. It is hoped that it would encourage them to opt for a more eco-friendly car, instead.
The tax would affect those buying vehicles that emit more than 225gCO2/km.
These drivers would be targeted and made to pay a 50% purchase tax from this year, which would increase in instalments each year until only fully-electric models were exempt by 2030.
Payment parking ban
London’s ban on pavements could be rolled out to the rest of the UK in the next year, MPs have suggested.
If an extended law comes into effect, rule-breakers could face hefty £70 fines.
It is not known when or if the rules will come into place but the Department for Transport (DfT) said it could be soon.
‘Benefit in Kind’ rates are back
Benefit in Kind (BiK) rates were scrapped completely in March 2020 to encourage electric car usage, specifically through the use of salary sacrifice schemes.
But they’re now back and as of April, drivers may have to pay as much as £390 per year to use their vehicles due to BiKs reintroduction.
A 1% charge, based on income rates and vehicle value, could find many drivers with zero-emission models caught out, a charge that will likely increase to 2% in 2022.
However, while this is hardly likely to be welcome news to motorists, BiK rates are still way below what they were back in 2019 when they were at 16%.
Local clean air zone charges
While not being rolled out nationally, there are a number of local changes coming into force this year.
The UK’s existing Clean Air Zone is in London and is called the Ultra-Low Emission Zone (ULEZ). To enter ULEZ, you currently need to pay £12.50 on top of any congestion charge fees.
From October 25, 2021, the ULEZ area will expand up to the North and South Circular ring roads but stop short of including them.
There are also plans to expand it past London.
Clean Air Zone charges are being introduced in Bath and Birmingham in 2021 which could see residents and commuters hit with daily road charges, in an attempt to discourage journeys and lower pollution.
Birmingham’s charges could be as much as £8 per day, with drivers charged for using the city centre, which could amount to £40 every week. A clean air zone is also under consideration in Bristol.
Extension of the London driving charge
A Greater London borough charge is also being considered which would charge drivers £3.50 a day to enter the outer boroughs.
This would extend the cost of driving in the capital from the central zones covered by the London congestion charge, to the whole of Greater London.
Driving lessons and theory tests
Aside from law changes, driving lessons for learners are set to resume next month.
In England, learners are included in Step Two of the Government’s restart roadmap, which means that driving lessons are scheduled to start again on April 12.
For Scotland, driving lessons will be allowed from April 26 and the restrictions in Wales will be reviewed on March 12.
On April 12 in England, theory tests, motorcycle tests, LGV driving tests and car and trailer driving tests will also resume.
Driving tests
From April 22, at the earliest, car driving tests will restart in England subject to Covid vaccination targets and whether new Covid variants are under control.
But bear in mind that not all driving test centre waiting rooms will be open because of corona. You can still on online.
Mobile phone ban
Drivers will face a £200 fine and six penalty points for holding their phone while driving under new laws coming in this year.
The new ban replaces a loophole which currently allows people to take photos and videos while driving without being penalised.
The law is due to be introduced in the coming months after a consultation period ended on January 17.
