The DVLA has issued a caution to motorists about significant upcoming changes in driving regulations that will take effect this spring. Key updates to the Vehicle Excise Duty (VED) car tax will be implemented from the beginning of April 2025.
Notably, electric vehicles (EVs) are set to incur VED charges for the first time as their long-standing exemption is discontinued after over ten years. EVs will be aligned with traditional vehicles regarding standard rates, including initial-year tariffs and the Expensive Car Supplement (ECS).
The step to tax electric vehicles was originally disclosed by the Conservatives in 2022, and reaffirmed by Starmer’s Government in their Autumn Budget last year. Social media messages from the DVLA have relayed: "Vehicle tax is changing for electric and low emission vehicles from 1 April 2025.
Drivers will need to pay vehicle tax in the same way as those of petrol and diesel vehicles. This will apply to both new and existing vehicles.
As of April, EVs registered between April 2017, and March 2025 will be subject to a standard VED fee of £195. First-year EV owners will benefit from a significant deduction, but they will still incur a £10 levy for road usage, reports the Express. Vehicles registered between 2001 and 2017 will transition to the bottom tier of VED, costing £20.
Worries have been expressed, however, concerning the potential extra burden of a £425 ECS charge on electric vehicle owners. This fee affects cars valued at £40,000 and above, which encapsulates numerous mid-range models.
HM Revenue and Customs emphasised that the initiative was designed to make sure "drivers begin to pay a fairer tax contribution". The DVLA had previously detailed: "From 1 April 2025, registered keepers of electric, zero or low emission cars, vans and motorcycles will need to pay vehicle tax in the same way as registered keepers of petrol and diesel vehicles. This change will apply to both new and existing vehicles."
Outlining further specifics, they added: "This new measure removes band A under the existing VED system which is currently £0. Vehicles in this band will be required to move to the first band where a rate becomes payable."
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