New car tax changes could have an impact on business owners. (Image: Getty)
Business owners across the UK will be hit with “additional costs” from April due to a major overhaul of fees.
in line with Retail Price Index (RPI) inflation, and annual bills will jump to £195 per year.
First-year rates are also set to soar, with many and owners seeing
and hybrid owners will not escape in 2025 with years of discounts and exemptions ending in the Spring.
EVs registered after 2017 will pay the standard VED rate alongside petrol and diesel owners but if their car is valued over £40,000.
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VED fees will rise for petrol, diesel and electric car owners in April. (Image: Getty)
The new costs could be a major dent to companies relying on their fleets, with business owners paying the bills to feel the dent.
Experts at UK revealed motorists should “prepare” for price rises with many to be caught out.
Santander explained: “If you are responsible for overseeing your company fleet, it is important to prepare for the additional costs following the 2025 VED rate changes.
“Whilst you cannot avoid the increased costs, the financial impact of the road tax changes will depend on the size and electrification of your fleet.
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“You will still benefit from lower VED rates if you have a high percentage of zero-emission and electric cars. So, despite the increase, your company will still be better off. Not to mention, EVs continue to benefit from other financial savings.”
Companies expanding their electric car stock can benefit from low first-year rates until the decade’s end.
in first-year VED fees until 2029-30, but prices will dramatically rise for hybrid models.
Charges for cars emitting just 1-50 g/km of CO2 will increase from £10 to £110 over the 2025-2026 financial year.
have warned the new fees will lead to “increased operating costs” for firms relying on their cars.
They stressed companies may need to reassess the composition of their fleets and swap out older models for more tax-efficient alternatives.
However, specialists warn that depreciation could be a major concern, as companies are unlikely to get the returns expected on their investments.
Fleet Check explained: “As VED rates rise for high-emission vehicles, their resale value could take a hit. The increased annual tax burden may make these vehicles less appealing to prospective buyers, leading to faster depreciation.
“For businesses investing in such vehicles, this could significantly impact both the total cost of ownership and their eventual resale potential.”