Vehicle tax rules are set to change dramatically for certain drivers next month.
Motorists who drive certain vehicles should expect to receive a letter from the DVLA for the first time.
Drivers who own electric vehicles (EVs) will now be expected to adhere to the same tax rules as petrol and diesel vehicles.
From April 1, EV owners will pay Vehicle Excise Duty (VED) rates and added fees if their value exceeds £40,000 for the first time ever
This means they will also be sent tax forms for the first time. The majority of EV drivers will be expected to pay £195 a year, the same fees petrol and diesel owners pay. The Government says the changes will make the system fair for all motorists.
Many drivers chose to purchase electric vehicles to avoid paying vehicle tax, however this perk will now be a thing of the past.
Thousands of drivers are being reminded that they may be able to get free car tax until 2026 with a payment loophole.
Motorists can renew their road tax any time, so if you renew the tax on your electric car before 1 April 2025, you can enjoy road-tax-free motoring until March 2026, reports Birmingham Live.
Other changes include large hikes to first-year tax rates for new cars, with owners of higher polluting cars facing the biggest increases.
Motoring organisation the RAC explained: “Electric vehicles currently enjoy free road tax (also called Vehicle Excise Duty).
“However, from April 1, 2025, drivers of electric cars in the UK will need to pay for road tax for the first time.
“The new 2025 VED rules will impact hundreds of thousands of EV owners and their electric vehicle running costs.
“As well as paying for road tax for the first time, there will also be an expensive car tax supplement for electric cars with a list price that exceeds £40,000.
“Many of the road tax changes will be backdated, which means drivers who have never paid for VED before will be required to do so after April 1, 2025.”
They added: “At the moment, drivers of electric vehicles do not have to pay for road tax; however, they must still get their vehicle taxed – even if they do not need to pay any money to do so.
“From April 1, 2025, drivers of electric vehicles will need to pay for VED – road tax for the first time.
“For most EV drivers, this will be £195 a year, while drivers of new electric cars with a list price that exceeds £40,000 could pay as much as £620 a year.”
