Many drivers may not realise they’ll have to foot a bigger bill (Image: Getty)
The Driver and Vehicle Licensing Agency (DVLA) has issued a new alert warning to drivers, stating that they could face extra charges in just over two months. This comes as many motorists are set to pay more car tax from April when the new Vehicle Excise Duty (VED) rates come into effect.
The DVLA explains on its website that from April 1, “registered keepers of electric, zero or low emission cars, vans and motorcycles will need to pay vehicle tax in the same way as registered keepers of petrol and diesel vehicles”. This change will apply to both new and existing vehicles.
In a recent update on X, formerly known as Twitter, the DVLA announced: “From 1 April 2025, vehicle tax is changing for electric and low emission vehicles. See how these changes affect you.”
Currently, vehicles in band A under the existing VED system do not have to pay road tax. However, from April, vehicles in this band will be subject to a payable rate.
For vehicles of this type registered on or after April 1, 2025, there will be a fee of £10. From the second payment, this will increase to £195.
From 1 April 2025, vehicle tax is changing for electric and low emission vehicles.See how these changes affect you ??????
— DVLA (@DVLAgovuk)
For electric, zero or low emission cars registered between April 1, 2017, and March 31, 2025, a £195 rate will apply. Additionally, a £20 fee will be applicable for electric, zero or low emission cars registered between March 1, 2001, and March 31, 2017.
Owners of “expensive cars” will face an additional charge. This refers to new electric and zero-emission vehicles registered on or after 1 April 2025, with a list price exceeding £40,000.
These vehicles “will attract the standard rate, plus the expensive car supplement” – an extra £410 in Vehicle Excise Duty (VED) annually for the first five years of ownership. The DVLA has further clarified that the £10 annual discount for hybrid and alternatively fuelled vehicles (AFVs) will be removed, and “the rate you will pay will depend on when the vehicle was first registered”.
For those registered before 1 April 2017, the “rate will depend on the vehicle’s CO2 emissions”. AFVs registered on or after 1 April 2017, will be charged the £195 standard rate.
Most electric vans will move to the standard annual rate for light goods vehicles, while most electric motorcycles and tricycles will move to the annual rate for the smallest engine size.