Driving law changes launching in May will see new HMRC fuel rules, car finance scandal updates and more

With the new rules being introduced over the next few weeks, GB News has rounded up the most important driving law changes in May 2025 that could impact you.

Do you have a story you'd like to share? Get in touch by emailingmotoring@gbnews.uk

Fuel

HM Revenue and Customs has published new VAT road fuel scale charges which will come into effect from May 1, 2025, until April 30, 2026.

These road fuel charges can be used on a VAT return to account for the private consumption of fuel when using a business vehicle.

Drivers are required to work out the correct road fuel charge based on the CO2 emissions output of the car, as well as the length of their VAT accounting period, which can be one, three or 12 months.

If the car produces less than 120g/km of CO2, HMRC states that the VAT-inclusive consideration for a 12-month prescribed accounting period is £661.

Prices rise drastically from this point, with cars emitting 125g/km of CO2 paying £990 for a one-year period.

The most polluting petrol and diesel vehicles, namely those which produce more than 225g of CO2 per kilometre will pay a staggering £2,314.

While this is still a substantial sum, it is £140 cheaper than the previous fuel rates which applied from May 1, 2024, until April 30, 2025.

Car finance

The Financial Conduct Authority (FCA) is expected to deliver an update on the car finance scandal in May following its investigation into the use of discretionary commission arrangements (DCAs).

It will confirm within six weeks of the Supreme Court's decision whether a redress scheme is being considered and how it will be taken forward.

The case relates to hidden DCAs which allowed brokers and dealers to earn more commission if they charged drivers with a higher interest rate.

In a statement, the FCA said: "Throughout our work, we will continue to consider how to make sure affected consumers are appropriately compensated and the motor finance market continues to work well, with effective competition, for the millions of consumers who rely on it every year."

Since the investigation was launched in January 2024, more than 2.5 million complaints have been launched with the Money Saving Expert DCA tool.

Consumer finance expert Martin Lewis has been particularly vocal in his support for motorists, suggesting that the car finance scandal could be on the same scale as the infamous PPI scandal.

Lewis suggested that the most likely outcome from the situation would be a redress scheme for DCA complaints, with payouts reaching more people at a cost in the "low £10s of billions".

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HGVs

Drivers operating heavy goods vehicles in Greater London will need to obtain a safety permit before operating or they could face a penalty charge notice.

Motorists now need to install the Progressive Safe System for zero, one and two star-rated HGVs. The original deadline was October 28, but drivers have been given a six-month grace period to obtain an HGV safety permit.

The penalty charge notice for HGVs driving within "most of Greater London" without a valid permit will cost up to £550, although this will be cut to £275 if paid within 14 days.