DON'T BE FUELLED

How you can avoid being stung by the new diesel tax that’s coming in April 2018

DIESEL buyers face a tax hike of up to £500 on new motors from next year.

Even the latest and cleanest Euro 6 models face first year vehicle excise duty rises under Chancellor Philip Hammond's plans.

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New diesels face a tax hike from April 2018Credit: Alamy

The hike can be anywhere from £20 on smaller cars like the Ford Fiesta all the way up to £500 for the bigger engine luxury cars like Land Rovers or Porsches.

The new tax laws don't apply to drivers who own cars already and they don't mean new buyers should avoid diesel altogether.

There are still plenty of reasons to buy a new, clean diesel if you do high mileage up and down the motorway as you'll get much better fuel economy than a petrol or hybrid.

And with Hammond's fuel duty freeze you won't be hit at the pumps when you do fill up.

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New diesels bought after April 2018 will jump up one tier in the first year

So, if you want to stick with diesel on your next car, how can you avoid being hit hard?

Here are five tips for beating the tax when you head to the car showroom.

Buy before April

The new changes only kick in from April 2018 - which gives you four months to register your new car and avoid paying up.

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Anything bought before 1 April will still be taxed on the existing system and you won't pay more in the first year.

And you can register it right up until the final day of March.

So expect dealers to be offering big incentives on new diesels to entice buyers into the showroom in March for the 18-plate models to beat the tax hike.

Hammond targeted new diesel buyers after April with his Budget speechCredit: AFP or licensors
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Consider pre-registered cars

If you can't get the cash together before April or don't need a new car before then there's still a way to get into an nearly new motor without paying the tax.

Look out for a pre-registered car - one that a dealer has registered before 1 April meaning it'll be on the "old" tax rate.

It'll normally have a handful of "delivery miles" and you'll be listed as second owner but it'll be heaps cheaper than a new model, too.

You'll have to buy from a dealer stock (that means you won't be able to spec up a new car) but it could be great move to save cash.

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Don't go above 110g/km CO2 emissions

The new diesel tax can hit some buyers by as much as £500 - but that's only for cars that emit above 171g/km of CO2 like big engined SUVs.

Cars at the cleaner end - small family cars and superminis - will only face a tax hike of £20.

And manufacturers are constantly building cleaner, more efficient engines for even bigger cars.

If you can find a car that has more than 75g/km and less than 110g/km, the one band jump after April 2018 will only add £20 to your bill.

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And all cars pay the same annual £140 rate after year one, so there's no effect there.

Dealers will have a stock of pre-registered cars that can help beat the taxCredit: Getty - Contributor

Check the car's technology

Right now there are no cars exempt from the tax but by April 2018 that could change as manufacturers meet latest pollution standards.

Hammond said cars that pass the most up-to-date tests will be exempt - this means models that have gone through real-driving emissions (RDE) tests introduced in September this year.

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By April, some cars will have been certified so make sure you do your research as you might be able to unearth a car fresh off the factory line that doesn't have to pay extra.

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Do you need a diesel?

Obviously the easiest way to avoid paying the tax is to give diesel a miss altogether - although for some who do big mileage this might not be an option.

However, it's worth doing the sums to see whether your mileage and fuel bill savings are more than the extra tax and increased purchase price of a diesel.

While you might not be ready to take the electric plunge, consider a hybrid instead which can offer the best of both: motorway economy and city centre emissions tech.

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Budget 2017: Key points at a glance

CHANCELLOR Philip Hammond has delivered his second Budget as Chancellor. Here are the key points:

  • Stamp Duty: Stamp duty to be abolished immediately for first-time buyers purchasing properties worth up to £300,000.
  • Living Wage: The National Living Wage will rise from £7.50 to £7.83 for those aged 25 and over from April.
  • Diesel cars: New £500 diesel road tax from April next year.
  • Booze: Duty on beer, wine, spirits and most ciders has been frozen.
  • Plastic Plan: Takeaway boxes and bubble wrap are to be taxed in an attempt to tackle the growing usage of single-use plastics.
  • Crackdown on tech giants: Tech giants like Apple, Google and Spotify may have to pay tax on royalty payments.
  • New railcard for under 30s: Hammond confirmed a new railcard for 16-30 year-olds which will give a third off fares.
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