A vehicle registration tax is a fee incurred by individuals for the first registration. The payable amount is 55 Euros, and the vehicle enrollment occurs with the DVLA. Vehicle tax is contingent on the engine size and CO2 emissions. It also depends on when the vehicle was registered. Every car has an individual rate, which can be estimated by employing a vrt calculator. The UK abolished the road tax to replace it with Vehicle excise duty. The road tax was imposed in 1909 and already fast-tracked its way to abolition by 1926. Winston Churchill reported a memo stating, “Entertainments may be taxed; public houses may be taxed… and the yield devoted to the general revenue. But motorists are to be privileged for all time to have the tax on motors devoted to roads? This is an outrage upon common sense.”

The vehicle excise duty is a more plausible approach to taxation. It eliminates differentiation and preaches that the public as a whole is equal. No single motorist has a leg up above a cyclist because they supposedly bear taxes that the latter does not. Hence, one must not confuse a road tax with a vehicle tax. Vrt calculators enable people to calculate what they owe to the government. The VRT was initially introduced in 1888 and then updated in 1920. It is an imperative cost for one to pursue driving or parking in the UK.


The VRT is levied as an excise duty and is a necessary tax for every vehicle driven or parked on UK roads. These taxes are consolidated to the 1926 funds, set up by the Chancellor of Exchequer at the time Winston Churchill. As discussed above, the vehicle tax does not pay for the roads. Roads are maintained with the general taxes. The road tax paid for road maintenance once, but after state-of-the-art technologies took an upswing, the government faced a severe shortage with building more roads. People started buying more cars, and better quality roads became a necessity. The local and general authorities began to remedy the lack of funds. Subsequently, our roads began to be sustained by the government. Technically, however, the money stems from the consolidated funds. 


The central government manages the consolidated funds that benefit everyone, including constructing new roads, building tunnels, widening existing roads, and making other changes that simplify the driver’s lives. At the peak of traffic jams, roadworks are instrumental in making the driving experience more seamless.

Other local projects include fixing potholes, resurfacing roads and enhancing car parks. It also pays to maintain local and council-run properties such as the town hall, museums, libraries and street lighting. The nature of the consolidated funds is complex. Hence, discerning every penny spent on VRT is difficult. It is also used in the upkeep of hospitals, schools, welfare systems, railways and housing.


When a person acquires a brand new car, they have to register it. Either the dealer can fulfill these formalities, or the person can do it independently. In this case, they will have to:

1) Fill in form V55/4 OR V55/5

V55/4: Includes new imported vehicles and newly-built cars

V55/5: Includes rebuilt vehicles utilized imported vehicles and older vehicles that never underwent registration.

2) Providing identification documents

The individual must send a photocopy of their driving license with the application to confirm their identity. Other documents used to attest one’s identity are passport, marriage certificate, decree nisi or absolute, birth certificate and current UK paper driving license.

They can attest their address using a recent utility bill (gas, electricity, water, landline), recent bank or building society statement (past three months), medical card and council tax bill for the current year.

Other supporting documents like payment for vehicle tax, new registration fee, MOT certificate, a certificate to declare the newness of the vehicle and insurance certificate are necessary.

After submitting these documents, the DVLA might inspect the car and approve the application. They also return the documents post verification. The payment modes oscillate between different online transaction methods, but cash is unacceptable.


There are ways to get exempted from paying the vehicle tax. That includes vehicles driven by disabled people, organizations that provide transport for disabled people, historic cars, electric cars, mowing machines and steam vehicles. Paying vehicle taxes is of broad interest to the entire population because everyone reaps its benefits.

The government carefully delegates these funds for public welfare.