Work out the new tax rate

You need to work out if you鈥檒l need to pay more tax because of the change.

  1. Find out the new rate of vehicle tax.

  2. Work out the difference between the old and new rates of your vehicle tax. For example, if the old rate is 拢100 and the new rate is 拢130, the difference is 拢30.

  3. Divide the difference by the number of months you pay your tax over. For example, 拢30 divided by 12 months is 拢2.50.

  4. Multiply this by the number of months remaining on the tax. For example, 拢2.50 multiplied by 4 months is 拢10.

  5. Pay the extra vehicle tax. In this example you would need to pay 拢10 extra tax.

If the tax rate increases

You have to pay the increased rate from the first day of the month you change the tax rate in.

Example

If you change the tax class on 25 March, you鈥檒l have to pay the increased rate from 1 March.

If the tax rate decreases

You pay the decreased rate from the first day of the next month.

Example

If you change the tax class on 25 March, you鈥檒l pay the decreased rate from 1 April.