DVLA issues urgent car tax warning as drivers face massive £600 cost hike within months
WATCH: Steve Reed MP on electric car changes
GB NEWS
Motorists are being warned of incoming car tax changes which could see drivers pay Vehicle Excise Duty for the first time, with rule changes being launched soon.
The Driver and Vehicle Licensing Agency (DVLA) has taken to social media to call on motorists to be aware of new car tax changes set to launch in the coming months.
Writing on social media platform X, formerly known as Twitter, the DVLA stated: "Vehicle tax is changing for electric and low emission vehicles from 1 April 2025."
This was accompanied by a graphic and a link to the GOV.UK website outlining the changes and when they will be introduced.
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Drivers are required to pay car tax if they own an electric vehicle next year
GETTY/PA
From April 1, 2025, drivers of electric and low emission cars, vans and motorcycles will begin paying vehicle tax in the same way as drivers of petrol and diesel vehicles.
The measures will change previous rules and remove certain bands that many drivers will be used to. Band A under the existing VED system, which is currently £0, will be removed.
Any vehicles included in this band, like electric and hydrogen vehicles, will be required to move to the first band where a band becomes payable.
The newest vehicles on the road - namely those registered on or after April 1, 2025 - will pay the lowest rate of vehicle tax which currently applies to vehicles with CO2 emissions of between one and 50g/km.
From the second tax payment onwards, they will have to pay the standard rate, which is currently £190, but is subject to change for 2025.
Barring any changes to legislation, any changes will usually be in line with inflation, with drivers included in the lower bands normally paying an additional £5 or £10.
The same £190 standard rate fee will also be charged for electric and low emission cars registered between April 1, 2017, and March 31, 2025.
However, owners of older electric vehicles could pay just £20 by moving to the first band that has a VED value if the car was registered between March 1, 2001, and March 31, 2017.
Electric vans will move to the standard annual rate for light goods vehicles, while electric motorcycles and tricycles will move to the annual rate for the smallest engine size.
Despite the marginal price rises, some owners of electric cars and vans could end up paying hundreds of pounds more because of the Expensive Car Supplement.
This is an additional charge attributed to vehicles with a list price exceeding £40,000 and will apply to vehicles registered on or after April 1, 2025. This costs £410 and could see some drivers pay £600 in total, despite paying far less the year before.
The car tax changes were first announced in 2022 when former Chancellor Jeremy Hunt said all motorists needed to pay their fair share of vehicle tax.
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Electric and low emission vehicles will be required to pay VED from April 2025
X/DVLA
These changes are unlikely to be affected by any new announcements in the upcoming Autumn Statement which will be delivered by Chancellor Rachel Reeves on Wednesday, October 30.
Motorists are being warned to expect potential changes impacting the rate of fuel duty, potential road pricing measures and support for expensive car insurance costs.
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