Huge vehicle tax changes are on the way during 2025, with drivers being warned to get their heads around the new rules before they are introduced. More motorists will have to pay the £190 standard vehicle tax rate from April.
For the first time ever, vehicle tax will apply to owners of electric cars. It may come as a nasty surprise to EV owners who were not prepared for these changes.
From April, they will have to pay the £190 fee, bringing them in line with owners of petrol and diesel motors. The change has been made by the Government who feel they can no longer continue to allow EV drivers to get off without paying tax.
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Their tax-free status was previously viewed as a perk and an incentive to going electric. But the number of electric cars is increasing by the year, meaning the Government would only continue to lose out on tax revenue without taking action.
Ministers have argued the change will make the tax system “fairer” for all. The top-selling electric cars include the Tesla Model Y. MG4 EV and Audi Q4 e-tron.
Owners of all these models will be affected and will see tax notices drop through their letterboxes in 2025. First-year tax charges are also increasing for some cars. This relates to new models less than a year old.
The Government said: “From April 1, 2025, drivers of electric and low-emission cars, vans and motorcycles will need to pay vehicle tax in the same way as drivers of internal combustion engine (ICE) vehicles do. This change will apply to both new and existing vehicles and will ensure all drivers begin to pay a fairer tax contribution.
“From April 1, 2025, drivers of electric and low-emission cars, vans and motorcycles will need to pay vehicle tax in the same way as drivers of internal combustion engine (ICE) vehicles do. This change will apply to both new and existing vehicles and will ensure all drivers begin to pay a fairer tax contribution.”