How to Tax Your Car in the UK: Your Complete Guide

Taxing your car is a legal necessity for almost every vehicle on UK roads. Officially known as Vehicle Excise Duty (VED), this tax is crucial for driving legally, and the process is managed by the Driver and Vehicle Licensing Agency (DVLA). Whether you've just bought a new car, your renewal is due, or you're unsure about the costs, this guide will walk you through everything you need to know for 2025.

Even if your vehicle is exempt from payment—for instance, if you have an electric car (until 2025) or qualify for a disabled tax exemption—you must still go through the process to register it as taxed with the DVLA.

What You'll Need to Tax Your Car

Before you start, it’s best to gather your paperwork. Having the right document to hand makes the process quick and simple. You will need one of the following:

• V11 Reminder Letter: This is the official reminder sent by the DVLA before your current tax expires. It contains a 16-digit reference number. For more details, see our guide to the V11 reminder.
• V5C Logbook: This is your vehicle's registration certificate. You will need the 11-digit reference number from the V5C if it's in your name. Learn more about your V5C logbook here.
• V5C/2 New Keeper Supplement: If you've just bought a car, the previous owner should have given you this green slip. It has a 12-digit reference number you can use to tax the vehicle for the first time.

You will also need:

• A valid MOT certificate, which must be valid from the date your new tax period starts. This is a legal requirement for cars over three years old. You can learn more in our ultimate MOT guide.
• A valid car insurance policy.
• A method of payment (debit/credit card or bank details for Direct Debit).

What If I Don't Have a V5C or V11?

If you don't have a V5C in your name or a V11 reminder, you can't tax your vehicle using the standard methods. You will need to apply for a new V5C logbook using a V62 form. This costs £25. The good news is that you can often apply for a new V5C and tax the vehicle at the same time at a Post Office or online via the GOV.UK website.

How Much Does Car Tax Cost in 2025?

The amount of VED you pay depends on several factors: the car’s age, its official CO2 emissions, its fuel type, and its list price when new.

Cars Registered On or After 1 April 2017

These vehicles have a two-part tax rate:

1. First-Year Rate: This is a one-off payment based on CO2 emissions, paid when the car is first registered. It ranges from £0 for zero-emission vehicles up to £2,745 for cars with emissions over 255g/km.
2. Standard Annual Rate (from the second year onwards):
   • For petrol and diesel cars, the standard rate for 2025/26 is £195 per year.
   • For alternative fuel vehicles (hybrids, bioethanol, LPG), the rate is £185 per year.
   • Zero-emission vehicles (electric cars) are currently £0 but this is changing.

Expensive Car Supplement: If your car had a list price of over £40,000 when new, you must pay an additional supplement of £425 per year for five years (from the second to the sixth year of the car's life).

Big Changes for Electric Vehicles (EVs) from April 2025

From 1 April 2025, zero-emission vehicles will no longer be exempt from VED.

• New EVs registered from 1 April 2025: Will pay the lowest first-year rate (£10) and then the standard rate (£195) annually thereafter.
• EVs registered between 1 April 2017 and 31 March 2025: Will move to the standard rate of £195 per year.
• EVs registered between 1 March 2001 and 31 March 2017: Will move to the Band B rate, which is £20 per year.

Cars Registered Between 1 March 2001 and 31 March 2017

For these vehicles, the annual tax rate is based on CO2 emissions bands (A to M). It ranges from £0 for the lowest-emission cars (Band A) up to £735 for the highest (Band M).

Cars Registered Before 1 March 2001

Tax is based purely on engine size.

• Engine size up to 1549cc: £220 per year.
• Engine size over 1549cc: £360 per year.

A Step-by-Step Guide to Taxing Your Vehicle

You have three main options for taxing your car. The online method is generally the most convenient.

Method 1: Online (The Quickest Way)

The government's online service is available 24/7 and is the fastest way to get taxed.

1. Visit the official GOV.UK vehicle tax website. Be wary of unofficial sites that charge an extra fee.
2. Enter your reference number: Use the 16-digit number from your V11, the 11-digit number from your V5C, or the 12-digit number from your V5C/2 new keeper slip.
3. Confirm your details: The system will check your MOT and insurance status electronically.
4. Pay for your tax: You can pay for 6 or 12 months using a debit or credit card, or set up a Direct Debit to pay monthly, 6-monthly, or annually.

Method 2: At a Post Office

You can tax your vehicle at any Post Office branch that deals with vehicle tax.

1. Find a suitable branch: Use the Post Office Branch Finder online.
2. Bring your documents: You must bring your V5C, V11, or V5C/2, plus your valid MOT certificate. If you're in Northern Ireland, you also need your insurance certificate.
3. Pay at the counter: You can pay with cash, cheque, debit card, or set up a Direct Debit.

Method 3: By Phone

This is an automated 24-hour service.

1. Call the DVLA on 0300 123 4321.
2. Have your V5C or V5C/2 ready: You'll need to provide the reference number.
3. Follow the prompts: You can only pay with a debit or credit card. You cannot set up a Direct Debit over the phone.

Special Circumstances

Taxing a Car You've Just Bought

Vehicle tax is not transferable. When you buy a used car, the previous owner must cancel their tax, and you must tax it in your name before you can drive it. You can do this instantly online using the 12-digit reference number on the V5C/2 new keeper slip.

Declaring Your Car Off the Road (SORN)

If you are not using your car on public roads and are keeping it in a garage or on a private driveway, you must declare it "off the road" with a Statutory Off Road Notification (SORN). You do not need to pay tax on a SORN'd vehicle. Find out more on how to SORN your car here.

Cancelling Your Car Tax and Getting a Refund

If you sell your car, declare it SORN, or it's written off, you need to tell the DVLA immediately. They will automatically cancel your tax and issue a refund for any full months remaining. Learn more in our car tax cancellation guide.

Frequently Asked Questions (FAQ)

How can I check if my car is taxed?

You can use the free GOV.UK vehicle enquiry service. Just enter the vehicle's registration number to see its tax and MOT status. For a more detailed look, check out our guide on checking road tax.

What happens if I drive an untaxed car?

Driving without tax is illegal. You can receive an £80 fine from the DVLA, which can rise to £1,000 if it goes to court. Your vehicle could also be clamped, towed, and even crushed.

Do I still need a tax disc?

No, paper tax discs were abolished in 2014. Enforcement is now done electronically using Automatic Number Plate Recognition (ANPR) cameras.

Does car tax renew automatically?

Yes, if you pay by Direct Debit. The DVLA will continue to take payments until you notify them that you have sold the vehicle, declared it SORN, or it has been written off.

Is it cheaper to pay for 12 months?

Yes. Paying monthly or every 6 months via Direct Debit incurs a 5% surcharge, so paying for a full year upfront is the most cost-effective option.

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