Experts demand immediate car tax change with 80/% of drivers at risk of £425 fee

Experts have called for car tax rules to be changed (Image: Getty)

Experts have demanded an immediate update to with new changes set to have a major impact on certain motorists within months. 

Caroline Sandall-Mansergh, consultancy and channel development manager at , has called for the Expensive Car Supplement (ECS) threshold to rise. 

owners will be eligible to pay the extra £425 ECS fee from April 1, 2025

The ECS rules issue an for a five-year spell between the second and sixth years of ownership. 

The cut-off point means the extra bill has only been paid by those with the keys to luxury high-performace models until now. 

electric car charge

Electric car owners will be liable to pay the ECS fee from April (Image: Getty)

But the staggering upfront cost of EVs is forcing many mid-market and family vehicles to be drawn into

Caroline said: “I don’t believe the current threshold of £40,000 is at the right level. 

“Based on a review of Alphabet’s data relating to 3,508 quotable vehicle models, our view is that it should be raised to £60,000.

The new analysis from Alphabet has revealed that just 19% of zero-emission models currently cost less than £40,000. 

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It means that a whopping four in five EVs sold in the UK market are priced above the threshold with

The ECS charge is slapped on top of standard Vehicle Excise Duty (VED) fees with owners paying a total bill of well over £600 to use the roads. 

The ECS charge also stays in place for any subsequent owners meaning those looking at the second-hand car market may also be impacted. 

However, Alphabet has stressed that any raise to the ECS threshold should only be a temporary measure. 

Caroline has admitted experts should hold annual reviews with the threshold gradually falling as more affordable cars hit the market. 

But she stressed that the current market conditions showed there was a need for an immediate “shift” in the policy ahead of the Spring.

She added: “Our data reveals that the average P11D value of quotable petrol, diesel, hybrid and EV models reviewed is £51,855 – just over 25% more than the current ECS threshold. 

“However, if you look at 961 of quotable EV models, the average list price is £60,273. 

“And for 81% of quotable EVs that are listed over £40,000, the average P11D equates to £66,041 which shows just how much the threshold needs to shift to be truly reflective of the market.”

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