Car Tax Scams Threaten Motorists Ahead of April Changes
Millions of drivers face increased risk of falling prey to car tax scams as new Vehicle Excise Duty (VED) rules are implemented, including charges for electric vehicles. The changes, which come into effect on April 1st, include new VED costs for electric vehicle owners and standard rate increases for petrol and diesel cars.
As the deadline nears, experts are cautioning drivers about a surge in fraudulent VED payment requests. These scams may lead to significant financial losses for unsuspecting motorists.
“Since the budget, drivers are coming to terms with the increase in VED in any new petrol or diesel cars purchased next year, as well as new standard rate charge increases for all internal combustion engine cars,” noted Rhydian Jones, a car insurance expert from Confused.com.
To avoid falling victim to these scams, drivers should adhere to the following guidelines:
- Carefully Review Records: Before making any payments, check your records to ensure the request aligns with your renewal date. Scammers often send emails or texts outside of this timeframe.
- Scrutinize Communications: Look out for spelling mistakes, unusual formatting, or strange email addresses. These are common indicators of fraudulent activity.
- Verify Tax Status: Utilize the official tax checker tool to confirm your vehicle’s tax status and expiration date. This will help you identify suspicious notifications.
If you believe you have received a suspicious request, do not click on any links or provide any personal information. Instead, report the issue immediately to the relevant authorities.
Under the new regulations, electric vehicles registered after April 1 will be subject to a £10 first-year rate, followed by a £195 annual fee. Furthermore, the Expensive Car Supplement, which applies to vehicles costing over £40,000, will now include electric cars, at an additional £425 per year. This could significantly increase costs for owners of high-value EVs, according to experts from Dick Lovett.
The car tax alterations were previously announced in the 2024 Autumn Statement by Chancellor Rachel Reeves.
