Road tax bills of £445 and beyond: what higher VED rates mean for drivers of thirsty cars

Most of us treat road tax like a bad weather forecast. We grumble when it arrives, pay it and move on. But for drivers of older, higher-emission cars, the annual Vehicle Excise Duty (VED) bill has become a number that can make you stop and think about whether the car is still worth keeping.

According to a report in the Birmingham Mail, updated VED rates mean some higher-emission vehicles now face noticeably bigger annual charges. Cars in Band K are reported to cost £445 a year, while the top bands can reach £760 or £790. Set against the standard rate that most newer cars pay, that is a very different financial proposition.

This guide looks at what those figures mean, how the system works, what the law says if you get it wrong, and what practical steps you can take.

What the report says

The Birmingham Mail article highlights how updated VED rates are landing on drivers with higher-emission vehicles. The headline figures are:

• Band K: reported at £445 per year
• Higher bands: reported at £760 or £790 per year

Those top-band figures are about £315 to £345 more than the Band K price, and the gap with the flat standard rate paid by most newer cars is wider still. For someone running an older large saloon, SUV or performance car, this is a meaningful annual cost on top of fuel, insurance and servicing.

The rates are published by the government and can change, so always check the current figures on GOV.UK before budgeting. The newspaper report is a useful snapshot, but the official rate table is the authority.

Why VED looks so different depending on your car

VED is not one tax. It is several overlapping systems, which is why two neighbours can pay wildly different amounts.

1. Cars registered between March 2001 and March 2017. These are taxed by CO2 emissions in grams per kilometre, split into lettered bands from A (the cleanest) to M (the dirtiest). Band K broadly covers cars emitting roughly 201 to 225 g/km, with L and M above that. This is the group most affected by the figures in the story. Your CO2 figure is on your V5C logbook.

2. Cars registered from April 2017. These pay a first-year rate based on CO2 when the car is new, then a flat standard rate every year afterwards. The standard rate is much lower than the top lettered bands, which is why older thirsty cars stand out. Cars with a list price above a set threshold also pay an additional "expensive car supplement" for five years.

3. Cars registered before March 2001. These are taxed by engine size, with a lower rate for engines up to 1549cc and a higher rate above that.

4. Electric cars. Zero-emission cars used to be exempt, but since April 2025 they pay the standard rate. This is an important change because it ended one of the clearest financial incentives for going electric. The wider policy debate about road charging is covered in our guide to electric vehicle tax changes, VED and pay-per-mile.

So when you read that Band K costs £445, remember it only applies to cars in the 2001 to 2017 CO2-based group. A 2020 hatchback and a 2012 large estate with a big engine are in entirely separate tax worlds.

Why it matters: the real cost of an older, thirsty car

The VED figure is only part of the picture, but it is one of the few motoring costs you cannot reduce by changing how you drive.

Consider what the report implies in practice:

• It is a fixed cost. Fuel use falls if you drive less. VED does not. You pay the same whether you do 2,000 miles or 20,000.
• It hits second-hand buyers. Older cars with big engines are often cheap to buy. A low purchase price can hide a hefty annual tax bill, plus high fuel consumption and often higher insurance.
• It can change resale logic. If you are considering selling a Band K or higher car, a buyer will factor in the tax. Some older high-emission cars may be harder to shift, while others appeal to enthusiasts who accept the cost.
• It stacks with other charges. Drivers in or near cities with clean air zones or the ULEZ may face daily charges if their vehicle does not meet emissions standards. For many older petrol and diesel cars, VED is just one line on a longer bill. Our Manchester CAZ guide explains how those zones work.

None of this means you should rush to scrap a car you love and use sparingly. It does mean the full cost of ownership deserves an honest calculation.

The legal angle: what the law says about vehicle tax

VED is governed by the Vehicle Excise and Registration Act 1994. The key principles are straightforward, but the consequences of getting them wrong can be harsh.

Tax is the keeper's responsibility. If a vehicle is kept on a public road, it generally must be taxed, even if it is not being driven. If it is not going to be used on public roads, the way to avoid the charge is to make a Statutory Off Road Notification (SORN). A SORN requires the vehicle to be kept off public roads, such as on a driveway or in a garage.

Tax does not transfer with the car. Since 2014, vehicle tax does not pass to the new owner when a vehicle is sold. The buyer must tax it in their own name before driving it away, and the seller should receive an automatic refund for any full months remaining. Mistakes at the point of sale are a common source of penalties, and we cover the aftermath of that in received a fine for a sold vehicle.

Enforcement is automated. The DVLA matches its records against insurance data and cameras. A vehicle that is not taxed and not SORN can trigger an out-of-court penalty, typically an £80 charge that is reduced to £40 if paid within 28 days. Ignoring it can lead to court action, where fines can reach £1,000 or more, in addition to back duty. In some circumstances, vehicles can be clamped or removed. See our DVLA enforcement guide for the process in more detail.

Penalties and procedures change, and individual circumstances differ. If you have received a letter and are unsure whether it is valid, check GOV.UK or the DVLA directly, or take independent advice. This article is general information, not legal advice.

What drivers should know: practical steps

1. Check which band your car is actually in

Look at your V5C logbook for the CO2 emissions figure and the registration date. Then check the current rate table on GOV.UK. If you believe the DVLA has put you in the wrong band, contact them with your documents. Some cars have unusual or missing CO2 data, which affects how they are taxed.

2. Pay annually if you can

Spreading the cost by Direct Debit is convenient, but it comes with a surcharge. Paying monthly over 12 instalments costs about 5% more in total than paying annually, and a six-monthly payment carries a smaller premium. On a bill of £445, the difference is not trivial. On a £760 or £790 bill, it adds up to a noticeable sum. If you can afford the lump sum, paying in one go is cheaper.

3. Do not let a Direct Debit lapse unnoticed

Direct Debits can fail if a card is replaced or a bank account closed. If a payment bounces and the tax lapses, the vehicle can be flagged quickly. Check your tax status periodically using the free GOV.UK vehicle checker, which takes seconds and needs only the registration number.

4. Use SORN properly

If you own a project car or a rarely used classic that is not being driven, a SORN stops you paying tax you do not need to pay. But SORN means the car must stay off public roads. Taking it for a quick drive, even to the MOT station, without valid tax can land you in difficulty (the exception is driving to a pre-booked MOT test). Check the rules before you move a SORN vehicle.

5. Sorting the sale properly

If you are selling a high-band car partly because of the tax, make sure you notify the DVLA of the change of keeper straight away, either online or using the relevant part of the V5C. This protects you from penalties, tickets and charges linked to a car you no longer own, and triggers your refund.

6. Check for historic vehicle exemptions

Vehicles first registered at least 40 years ago can qualify for the historic vehicle tax exemption, provided they have not been substantially changed. If you own a genuine classic, it is worth checking whether it qualifies, though you must still "tax" it at zero cost and keep it insured and tested as the rules require.

7. Do the whole-cost comparison before swapping cars

Before ditching a Band K car for something newer, compare running costs honestly. Saving on VED may be cancelled out by finance payments or depreciation on a newer car. A cheaper tax band is only one part of the sum. If you are weighing up an EV, remember that VED is now payable on those too, and that proposals for further road charging are being debated.

Looking ahead

The direction of travel is clear. VED has been moving away from a simple tax on engine size and towards a more complex mix of emissions-based charges, supplements and, for electric cars, a flat standard rate. At the same time, the government has to find a way to replace fuel duty income as more drivers switch to electric vehicles.

For drivers of older, higher-emission cars, the practical outlook is that annual costs are unlikely to fall. Rates generally change each April and can be adjusted in Budgets, so the figures in the Birmingham Mail may not stay the same for long. Anyone planning a purchase of an older petrol or diesel car with a large engine would be wise to look at the current VED band before committing.

The bigger debate, around pay-per-mile charging and how electric cars will contribute, is still unresolved. Whatever happens, the best protection is staying informed: knowing your car's band, checking your tax status regularly, paying in the cheapest way and acting quickly when you buy or sell.

Key takeaways

• Band K is reported at £445 a year, with higher bands at £760 or £790, according to the Birmingham Mail. Always confirm current rates on GOV.UK.
• These bands apply to cars registered between March 2001 and March 2017, taxed by CO2 emissions.
• Paying annually avoids the surcharge that comes with monthly or six-monthly instalments.
• Tax does not transfer when you sell. Notify the DVLA and make sure the new keeper taxes the car in their own name.
• Use SORN if a vehicle is not on the road, and keep it off public roads.
• Check your tax status periodically using the GOV.UK vehicle checker.
• If you receive a DVLA penalty you believe is wrong, check the official guidance or seek independent advice before paying or ignoring it.

The headline number may look like just another motoring grumble, but for owners of older, thirsty cars it is a real annual commitment. Knowing exactly where you stand is the easiest way to avoid paying more than you have to.