We show you how to save money on your car tax.

Plans to increase vehicle excise duty will go ahead next March and motorists will have to pay £440 for the most polluting cars – which emit over 255g/km of CO2.

Here are some ways to cut your road tax bills:

• Buy annually rather than every six months and save up to £40
• Pay for your car tax online and save postage fees
• Submit a SORN (Statutory Off Road Notification) if your vehicle is going to be off the road for more than six months
• Drive a company car – you could save money on car tax AND fuel
• Go green – avoid the March 2009 'showroom tax' and buy a green car which emits less CO2 before the change
• Buy a car registered before 1 January 1974 and you won’t have to pay a penny in tax. Bear in mind it’s unlikely to have power steering, electric windows and other in-car comforts.
• Buy a motorcycle and save hundreds of pounds in tax. Bikes with engines under 150cc cost £15 to tax per year.
• Get a car which runs on alternative fuel (anything other than petrol or diesel) and save at least £20 per tax band

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Do you have any tips of your own? Share them on the Auto Trader Blog.

Come back tomorrow for more money-saving tips.