Work out the new tax rate

You need to work out if you’ll 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 £100 and the new rate is £130, the difference is £30.

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

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

  5. Pay the extra vehicle tax. In this example you would need to pay £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’ll 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’ll pay the decreased rate from 1 April.