Drivers are being warned of new car tax changes launching within weeks which could see them slapped with hefty charges for the first time of owning their cars.
From April, the majority of British motorists will be required to pay more for their Vehicle Excise Duty (VED) following several announcements from the current Labour Government and the previous Conservative administration.
Ahead of the tax changes, the Driver and Vehicle Licensing Agency (DVLA) has been urging drivers to make themselves aware of the new rules.
This is especially important for electric vehicle owners who will be required to pay VED tax for the first time ever.
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Drivers face paying car tax on their vehicles for the first time
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Posting on social media site X, formerly known as Twitter, the DVLA wrote: “Vehicle tax is changing for electric and low emission vehicles from April 1, 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.”
The new measure will remove band A from the existing VED system which is currently £0. Any vehicles in band A will be moved to the first band where a rate becomes available.
The oldest electric vehicles registered between March 1, 2001, and March 31, 2017, will move to the first band with a VED value, costing them £20.
Any electric, zero or low emission cars registered between April 1, 2017, and March 31, 2025, will pay the standard rate of £195.
Any vehicles registered after the April 1, 2025, deadline will pay the lowest first year rate of vehicle tax. This is set at £10, while the standard rate of £195 will have to be paid from the second tax payment onwards.
While electric vehicles will maintain the lowest rate of road tax, many will find themselves needing to pay the Expensive Car Supplement.
This additional tax is set for anyone with a vehicle worth more than £40,000. It costs £410 a year and will have to be paid for the first five years from the start of the second licence.
Despite the low rates, some drivers who responded to the DVLA said they were switching back to a petrol model since there was “no difference now”.
Another said: “Got any more taxes you’d like to impose on vehicle owners? My pockets are running a little empty…”
A third frustrated commenter claimed: “Yep. You heard it… More motorists being ripped off by the UK Labour Government. Best not to purchase an electric car at this rate.”
The decision to impose Vehicle Excise Duty costs on electric cars was first introduced by former Chancellor Jeremy Hunt during the 2022 Autumn Statement.
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A number of other car tax changes will be introduced from April
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He said that the car tax changes would “reflect consumer behaviour” with the successful transition to electric vehicles. Hunt added that it will ensure “all motorists begin to pay a fairer tax contribution”.
