VED: What does it mean?

Annual car tax that must be paid to drive your vehicle on UK roads. Also known as road tax. Rates vary by emissions.

VED: The long answer

Vehicle Excise Duty (VED), also known as car tax or road tax, is a mandatory tax that all vehicle owners in the UK must pay in order to legally use their vehicles on public roads. The amount of VED you pay depends on various factors such as the type of vehicle, its fuel type, CO2 emissions, and the date of its first registration.

The UK government uses VED as a way to generate revenue for maintaining and improving the road network. The tax rates are structured in a way that encourages drivers to choose more environmentally friendly vehicles with lower emissions. This means that vehicles with higher CO2 emissions generally attract higher VED rates, while electric vehicles and those with lower emissions may be exempt or pay reduced rates.

VED can be paid annually or in monthly installments, and failure to pay the tax can result in fines and penalties. The tax is usually collected by the Driver and Vehicle Licensing Agency (DVLA) when you register your vehicle or renew your vehicle tax.

It's important for UK drivers to understand and comply with VED regulations to ensure they are driving legally and contributing to the maintenance of the road infrastructure.