Running a car in the UK: vehicle tax, MOT and insurance costs and penalties in 2026

Keeping a car in Britain rests on three things: vehicle tax, an MOT and insurance. Miss any of them and the penalty arrives automatically — no police stop needed, because cameras check against the DVLA and MID databases. Here is what it costs in 2026, what the fines are, and what to do if the car is just sitting on your drive.

The three things a car on the road must have

First, vehicle tax (VED, often called road tax): you pay for keeping the vehicle on the road, not for driving it. Second, the MOT: an annual test, required from the car's third birthday. Third, insurance — third party cover is the legal minimum, covering damage or injury to other people, vehicles, animals and property, but not repairs to your own car.

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One link matters: you cannot renew your vehicle tax if the MOT has expired. And without tax and insurance, a car can only legally be kept off the road, with a SORN.

What vehicle tax costs

For cars registered on or after 1 April 2017, the first payment is made at registration and depends on CO2: £10 at zero, £115 for 1 to 50g/km, £135 for 51 to 75, £280 for 76 to 90, £365 for 91 to 100, rising to £5,690 above 255g/km. Diesels that do not meet the RDE2 standard pay more — £1,410 instead of £560 in the 131 to 150g/km band, for example. That first payment covers 12 months and is usually built into a new car's price.

After that everyone pays the same, regardless of emissions: £200 a year as a single payment. Twelve monthly Direct Debit payments come to £210 — a £10 premium for spreading it. Six months costs £110, or £105 by Direct Debit.

The £440 supplement on cars over £40,000

If the list price when new was over £40,000 (petrol and diesel) or over £50,000 (electric), an extra £440 a year applies. It is the published price before discounts, not what you paid second hand. The annual bill becomes £640 (£672 by monthly Direct Debit, £352 for six months).

The supplement runs for five years from the second time the vehicle is taxed — so buying a three-year-old premium car second hand means inheriting it for the remaining years. Zero emission vehicles registered before 1 April 2025 are exempt; those registered between 1 April 2025 and 31 March 2026 are not.

Cars registered 2001 to 2017

Cars registered between 1 March 2001 and 31 March 2017 are taxed by CO2 band: band A (up to 100g/km) £20 a year, C (111 to 120) £35, D (121 to 130) £170, E (131 to 140) £200, G (151 to 165) £275, J (186 to 200) £410, L (226 to 255) £760, M (over 255) £790. The gap between band D and band M is nearly £620 a year, which is why the CO2 figure on the V5C is worth checking before you buy, not after.

MOT: when and how much

The first MOT is due by the third anniversary of registration, then annually. The maximum fee for a car is £54.85, and £29.65 for a standard motorcycle; there is no VAT on the fee. It is a cap, not a price — many garages charge less, especially alongside a service.

You can take the test up to a month (minus a day) before the current one expires and keep the same renewal date. Go earlier than that and the new expiry runs one year from the test date, so you lose part of the year.

Driving or parking on the road without a valid MOT can be fined up to £1,000. There are two exceptions: driving to a pre-arranged MOT, and driving to or from somewhere to be repaired.

Insurance and the penalties

Continuous insurance enforcement means the vehicle itself must be insured even if you are not driving it — unless it has a SORN. A registered keeper with an uninsured vehicle and no SORN can be fined £100, have the vehicle clamped, impounded or destroyed, and taken to court for a fine of up to £1,000. You still have to pay for the insurance on top.

Driving uninsured is treated more seriously: an IN10 endorsement carries 6 to 8 penalty points and stays on the driving record for 4 years. Twelve points in three years means disqualification. You can check whether a vehicle is insured free on askMID.

SORN: how to stop paying legally

A SORN (Statutory Off Road Notification) declares that the vehicle is off the road — in a garage, on a drive or on private land. You need one if the vehicle is untaxed or uninsured, even briefly, for example while a policy is being renewed. A SORN does not transfer from the previous keeper: if you buy a car and park it up, make a new one.

Without a SORN on an untaxed vehicle you are automatically fined £80. A SORN cannot be backdated. Once made, you automatically get a tax refund for any full remaining months. With a SORN you may only drive to a pre-booked test appointment; any other journey risks prosecution and a fine of up to £2,500.

Getting tax back when you sell

There is only one way to cancel vehicle tax: tell DVLA the vehicle has been sold or transferred, taken off the road, written off, scrapped, stolen, exported or registered as exempt. The tax is cancelled, any Direct Debit stops automatically, and a refund cheque for full remaining months is sent to the name and address on the log book. You do not get back credit card fees, the 5% Direct Debit surcharge or the 10% surcharge on a single six-month payment. If the cheque has not arrived after 8 weeks, contact DVLA.

Buying a car: the order of steps

Before money changes hands: look at the V5C and the CO2 figure on it, check the MOT history online — it shows recorded mileage year by year and every advisory — and check insurance status on askMID. After buying: the seller notifies DVLA of the transfer, you arrange insurance and then tax, in that order, because tax will not be issued without a valid MOT. If the car goes straight into storage, make the SORN the same day.

What to check today

Three free checks on the DVLA site take a minute each: tax status, MOT expiry date and SORN status. Add the MOT reminder service, which emails you a month ahead. Most £80 and £100 penalties are not about money — they are about a date that went unnoticed.

Exchanging a foreign driving licence is covered separately, and appealing a parking fine here.