Millions of drivers have been warned they could risk a huge car tax scam as the deadline for new payments edges closer.
From April 1, electric car drivers will face Vehicle Excise Duty costs for the first time, as standard rate charges for petrol and diesel cars increase too.
As drivers prepare to pay these new costs, there has been a growing risk in the rise of VED payment scams which risks impacting millions of drivers.
Experts have now warned drivers to follow simple steps to ensure they avoid getting caught out in the fraudulent practice.
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Drivers have been warned about a spike in car tax scams before April
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Under the rule changes, electric cars registered after April 1 will see payments rise to £10 for first-year bands before moving to £195 for second-year fees.
Rhydian Jones, Confused.com car insurance expert, comments: "Since the budget, drivers are coming to terms with the increase in VED in any new petrol or diesel cars purchased next year, as well as new standard rate charge increases for all internal combustion engine cars.
"The Chancellor has brought this decision in to widen the gap between electric and ICE vehicles, as EVs will only have to pay £10 in VED from next year. The hope is that this will encourage more drivers to buy green instead."
However, some drivers are being tricked by VED payment requests which are actually scams, and are being warned to avoid these.
To help avoid scams, drivers should check through detailed records before making any payments, this way, if a driver receives an email at a time of year not close to the renewal date, "you will know not to pay it".
Drivers should also look out for any spelling mistakes or strange formatting in the email as scams often come from strange email addresses.
He added: "If you do end up clicking a link from a scam email or text, you could end up losing a lot of money.
"Always be vigilant, your car tax needs to be renewed once per year and drivers can use our tax checker tool to see if their car is taxed and how long it has left. That way, you are less likely to fall for any unexpected notifications that could be trying to catch you out."
On top of paying VED for the first time, electric car drivers will also have to pay the Expensive Car Supplement if their vehicle costs more than £40,000.
This will mean an additional cost of £425 per year and marks a change from being previously exempt from the charge.
Experts from Dick Lovett added: "Those with vehicles also subject to the Expensive Car Supplement will stay within three figures on their total tax first-year costs (including the increased expensive car supplement) unless their vehicle produces more than 151g/km.
"Costs [will rise] from £680 to £1,360 - a cost increase of an eye-watering £680 compared to the 24/25 tax year. Those that produce more CO2 will see similar 100 per cent increases."
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The Chancellor previously introduced car tax measures in the 2024 Autumn Statement
GETTYThe changes to car tax payments were announced in the Autumn Budget last year by Chancellor Rachel Reeves.
