Peugeot 107 road tax costs £20 a year for every model produced between 2005 and 2014. The car’s small 1.0-litre petrol engine keeps CO2 emissions at or below 110 g/km, which places it in the lowest-cost tier of Vehicle Excise Duty for cars first registered before April 2017. The old £0 rate for Band A no longer applies, so even the cleanest 107 now carries a charge.
Why Every Peugeot 107 Costs £20 to Tax
The 107 was built between 2005 and 2014, which puts it under the emissions-based VED system used for vehicles registered from 1 March 2001 through 31 March 2017. Cars in that system stay in it permanently, even as newer vehicles follow different rules.1HM Revenue & Customs. Vehicle Excise Duty
The band depends on the gearbox. Manual versions of the Access, Active, Allure, and Envy trims emit around 99 g/km of CO2, which lands them in Band A (up to 100 g/km). The semi-automatic 2-Tronic versions emit around 104 g/km, which puts them in Band B (101 to 110 g/km). For the tax year beginning April 2026, both bands carry the same £20 annual rate, so the practical answer is identical either way.2GOV.UK. Rates of Vehicle Tax for Cars, Motorcycles, Light Goods Vehicles and Private Light Goods Vehicles April 2026
Paying by monthly Direct Debit adds a 5% surcharge. On £20 that comes to £1 across the year, bringing the total to £21. Six-monthly payments aren’t offered at this level because the rate is too low to split.3GOV.UK. Vehicle Tax Direct Debit Payments
Checking Your Car’s Band
The CO2 figure on your V5C registration certificate is the number that decides your band, not any figure from a brochure.4Vehicle Certification Agency. General Points If the V5C isn’t to hand, the GOV.UK car fuel and CO2 emissions tool covers vehicles first registered from 1 March 2001 onward.5GOV.UK. Car Fuel and CO2 Emissions Data For a 107 the cost lands at £20 either way, but confirming the band is still worth a minute.
What You Need to Tax the Car
You’ll need a reference number from one of three documents:
- The V11 reminder letter the DVLA sends before your tax expires (16-digit number).
- Your V5C logbook (11-digit number), if no V11 has arrived.6GOV.UK. Tax Your Vehicle Without a Vehicle Tax Reminder
- The V5C/2 new keeper supplement (12-digit number), if you’ve just bought the car.
The system automatically checks that the car has a valid MOT and active motor insurance before it lets the tax go through. You don’t need to upload anything; the checks run against electronic databases. The maximum fee for a standard car MOT is £54.85, though many garages charge less.7GOV.UK. Getting an MOT – MOT Costs
How to Pay
The fastest route is the GOV.UK site: enter your reference, confirm the vehicle details, and pay by debit card, credit card, or Direct Debit. The record updates within minutes. A Post Office branch that handles vehicle tax and the DVLA’s automated phone line are the two offline alternatives, and all three give immediate confirmation.
A Direct Debit takes the renewal off your calendar entirely. The DVLA pulls payment each year, or monthly if you prefer the £21 total. No tax disc is issued anymore; enforcement runs on cameras and database checks.
What Happens If the Tax Lapses
At £20 a year, the fines for letting tax lapse are the part worth paying attention to. Enforcement runs in layers:8GOV.UK. DVLA Enforcement of Vehicle Tax, Registration and Insurance Offences
- An automatic £80 late licensing penalty for being the registered keeper of an untaxed vehicle, reduced to £40 if paid within 33 days.
- An out-of-court settlement of £30 plus one and a half times the outstanding tax if you’re caught using the car on a public road. With a SORN in force at the time, the settlement rises to £30 plus twice the outstanding tax.
- A magistrates’ court fine of up to £1,000 (or five times the tax due, whichever is greater) if you refuse the settlement. With a SORN on the record, the ceiling rises to £2,500.
- Clamping or impounding. Releasing a clamp costs £100. A pounded vehicle costs £200 to release, plus £21 a day in storage and a £160 surety deposit if the car still isn’t taxed at release.
If a Direct Debit payment fails and the DVLA’s follow-up attempt also fails, the Direct Debit is cancelled and the vehicle is instantly classed as untaxed. Driving it from that moment is illegal until you re-tax it using your V5C.9GOV.UK. Vehicle Tax Direct Debit Payments – If a Direct Debit Payment Fails
Declaring a SORN If the Car Isn’t Being Driven
The Vehicle Excise and Registration Act 1994 requires every registered vehicle to have either active tax or a Statutory Off Road Notification at all times. A gap between the two triggers the £80 late licensing penalty. If you’re not driving your 107, declare a SORN instead of letting the tax run out.
You can declare a SORN online with the same reference numbers used for taxing (V11, V5C, or V5C/2). The declaration lasts indefinitely and doesn’t need annual renewal. It ends only when you tax the vehicle again, sell it, export it, or scrap it.10GOV.UK. When You Need to Make a SORN The car must stay off public roads throughout. Parking an untaxed, SORN’d 107 on the street is one of the fastest ways to get clamped.
Refunds When You Sell or Scrap
Vehicle tax doesn’t transfer with the car. When you sell your 107, the new owner has to tax it in their own name before driving it, and you receive an automatic refund for any full calendar months remaining.11GOV.UK. Tell DVLA You’ve Sold, Transferred or Bought a Vehicle The DVLA calculates the refund from the date it processes the change, so tell them promptly. Refunds come as a cheque to the address on the V5C. The same process applies if you scrap, export, or SORN the vehicle, and any Direct Debit is cancelled automatically at that point.
The Disabled Exemption
Certain disability benefits qualify a vehicle for a full VED exemption, which brings the annual cost to £0. The qualifying benefits include the higher-rate mobility component of Disability Living Allowance, the enhanced-rate mobility component of Personal Independence Payment, War Pensioners’ Mobility Supplement, and Armed Forces Independence Payment.12GOV.UK. Financial Help If You’re Disabled – Vehicles and Transport In Scotland, the enhanced-rate mobility component of Adult Disability Payment and Scottish Adult Disability Living Allowance also qualify.
To move your 107 into the disabled tax class, apply through the DVLA’s change of tax class process; the exact steps depend on whether your current tax has expired or still has time to run.13GOV.UK. Change Your Vehicle’s Tax Class Once approved, any full months already paid at the £20 rate are refunded.