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MILLIONS of drivers are set to be hit by car tax changes starting this week.

Hard-up motorists are bracing themselves for a financial hit as the DVLa rolls out new road tax changes.

Road users are set to be hit by a new tax blunder
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Road users are set to be hit by a new tax blunderCredit: Getty

Vehicle Excise Duty (VED) rates are shifting for nearly all petrol and diesel vehicle owners.

The DVLA is set to slap millions of motorists with tax increases worth hundreds.

The fee hike comes in line with overall vehicle emissions, meaning those emitting more pollution will face higher charges.

There are three systems of road tax - depending on when your vehicle was registered.

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Drivers for models registered between 2001 and 2017 will bear the burnt based on their emitting models - with fees jumping by £40 compared to last year.

Cars registered after April 2017 will face a £10 increase from £190 in their first-year payments at the lowest emissions range.

Richard Evans, head of technical services at , explained: “The rise in vehicle excise duty by up to £140 in April will mean drivers face even higher motoring costs during an already expensive time.

“Whilst VED is calculated by the amount of emissions produced by a vehicle and its engine size, the year the vehicle was registered can also have an impact on price.”

Those with brand new petrol and diesel models emitting over 255g/km of CO2 will face the highest fees - with bills soaring to £2,745 per year.

Rates for models registered after April 2017 are not spared as they will face an additional £10 tacked on - bringing annual rates to £190.

Millions can avoid car tax hikes in April with four exemptions

The latest blow to motorists comes amidst a surge in day-to-day driving expenses - including car insurance premiums and sky-rocketing fuel prices.

Despite the upheaval, motorists are urged to abide their tax obligations to avoid potential fined.

Failure to comply with tax regulations could result in hefty penalties - further burdening already strained driver's wallets.

Richard added: “Drivers need to be aware of how much they should be paying and when they need to pay it as it is a legal requirement.

“Currently, EVs and cars producing less than 100g of CO2 per kilometre don’t have to pay road tax, however, drivers still need to register the vehicle as taxed.

“Even if drivers think their car is exempt, they should still check the tax status online to avoid receiving any fines. Drivers can check their car's tax status with our car tax check and find out details about whether it is road legal.”

Five major VED exemptions

  1. Low and no-emission vehicles - those emitting less than 100g/km of carbon dioxide registered before 2017
  2. Historic vehicles - those which are more than 40 years old on a rolling basis
  3. Vehicles used by disabled people - if you qualify for the higher rate of major disability benefits including Disability Living Allowance, Personal Independence Payment or Child Disability Payment
  4. Vehicles used for agriculture, horticulture and forestry - including tractors
  5. Vehicles registered SORN

How can I check if my car is taxed?

You can check if your car is taxed on the gov.co.uk website.

To see your vehicle's tax status you will need its registration number.

If you have recently applied for car tax just note that it can take up to two working days for your records to update.

How often do I have to renew my car tax?

Car tax must be renewed annually.

You can set up a direct debit payment that will automatically renew your tax every year so you do not need to do anything.

This can be done online or at a Post Office.

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If you change your vehicle and therefore need to change your tax, the DVLA recommends cancelling your direct debit and contacting them to inform them of the changes.

They can then issue a refund for any full months of tax that have already been paid on your old car.

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