The Budget and Bikes | Motorcycle road tax to increase
As part of the chancellor’s budget, motorcycle road tax will be increasing although so will spending on maintaining the roads
MOTORCYCLE road tax is set to increase on April 1st, with all bikes set to see a small rise in the amount it costs to use your vehicle on UK roads.
The news follows chancellor Rishi Sunak’s second budget, which is understandably looking to ensure that the UK can recover from the costs of the Covid-19 pandemic that has had massive effects on the UK economy.
Within the budget, there were a few key issues that will affect us, motorcyclists. Here they are in full.
Motorcycle Road Tax set to rise
From April the first it will cost slightly more to tax your motorcycle, with all bikes and tricycles seeing an uplift in Vehicle Excise Duty.
The changes will see those on 125cc learner legal machines, such as the KTM Duke 125, and those riding machines over 150cc but not more than 400cc paying an extra £1 a year if paid as a lump sum. Riders using bikes that are over 401cc and not more than 600cc will pay an extra £2 per year, and those riding bikes over 600cc will pay an extra £3 per year, taking the total amount if paid as a lump sum for those bikes up to £96
Motorcycle Road Tax Prices 2021
Motorcycles | Non D-D | Non D-D | Direct Debit | Direct Debit | Six month |
CC | 12-months | 6-months | Single | Total amount | One-off |
Under 150cc | £21 | - | £21 | £22.05 | - |
151-400cc | £45 | - | £45 | £47.25 | - |
401-600cc | £69 | £37.95 | £69 | £72.45 | £36.23 |
Over 600cc | £96 | £52.80 | £96 | £100.80 | £50.40 |
Tricycles | |||||
Under 150cc | £21 | - | £21 | £22.05 | - |
All Tricycles | £96 | £52.80 | £96 | £100.80 | £50.40 |
Fuel Duty Frozen
While road tax is slightly increased, the chancellor did confirm that fuel duty would remain frozen at 57.95p per litre for the 11th year in a row.
The news will be a relief to motorists across the country and means those returning to slightly more normal life can continue to do so without the added burden of petrol prices rising.
Speaking to the press, Mr Sunak said:
“Right now, to keep the cost of living low, I'm not prepared to increase the cost of a tank of fuel. So the planned increase in fuel duty is … canceled.”
Electric Vehicles VED
It was also confirmed that Vehicle Excise Duty on electric vehicles would remain at zero again. It was also confirmed that the scrapping of tax on premium electric vehicles (costing £40,000 or more) would remain in place.