A new survey found thousadns of people who don’t pay road tax are unaware of big changes (Image: Getty)
A significant number of drivers are unaware of the major changes to road tax that will be implemented in less than a month, potentially leaving them with unexpected bills. According to a survey by car finance expert , nearly half of Brits (45%) are oblivious to the upcoming electric vehicle (EV) tax changes set to take effect this April.
At present, EV owners enjoy an exemption from Vehicle Excise Duty (VED), but this will change from April 2025 when all EVs will be subject to the same tax rates as petrol and diesel cars. This could cost owners around £195 per year.
Given that there are almost 1.4 million fully electric cars on UK roads, this means that approximately 630,000 EV owners could be taken by surprise by these additional costs.
From April 1, 2025, for the first time, EV drivers will be required to pay VED, marking a substantial increase in the cost of ownership. Additionally, a new Expensive Car Supplement will mean that buyers of electric vehicles costing over £40,000 could end up paying as much as £620 a year in tax.
For electric, zero or low emissions vehicles registered on or after April 1, 2025, drivers will have to pay the lowest first-rate of tax – £10 – but from the second tax payment onwards, this will rise to the standard rate of £195 a year.
Electric, zero or low-emission cars registered between April 1, 2017 and March 31, 2025, will now pay the standard rate of £195. Conversely, EVs registered between March 1, 2001 and March 31, 2017, will move to the first band that has a VED value, resulting in a tax payment of £20.
Electric vehicles (EVs), previously exempt from the Expensive Car Supplement, will face a new financial hurdle starting April 1. Cars registered from this date will incur an additional cost if they are priced over £40,000.
EV owners will be expected to pay a standard road tax rate plus a supplement for the first five years after the initial payment, which could amount to £620 annually.
The government’s drive towards increased EV adoption is hitting a roadblock with cost concerns, as a recent survey reveals. A significant 34% of Britons cite the steep purchase price of EVs as the primary obstacle to switching by 2025.
Charging infrastructure also raises alarm bells, with 18% of respondents anxious about the scarcity of charging points. The survey further underscores the varying attitudes towards EVs across different age brackets and regions.
Older motorists, especially those aged between 55 and 64, express strong reservations regarding the practicality of EV ownership. Geographical disparities also emerge, with certain areas showing more reluctance to adopt electric vehicles.
An administrator in their mid-50s from Newcastle voiced their apprehension: “The cost of electricity, lack of charging facilities away from home and the high price of electric cars make them unrealistic. Plus, the batteries don’t last very long.”
A 65+ secretary from Edinburgh shared her reservations: “I think it’s a bad idea switching to electric. They’re not suitable for cold countries or places like the north of Scotland.”
In contrast, a teacher aged 55–64 from Norwich voiced the obstacle for those with disabilities: “It’s virtually impossible for many disabled people to cope with hauling charging cables between chargers and cars.”
Vehicle finance expert Jonathan Such remarked on the changing financial landscape for EV owners: “Until now, one of the biggest benefits of owning an electric vehicle has been the financial incentives, particularly VED exemption. However, from April 2025, EV drivers will be required to pay car tax just like petrol and diesel drivers, which is typically around £195 per year.
“However, if you renew your vehicle tax before April 2025, you could extend your exemption for another year, meaning you won’t have to pay until March 2026. You can re-tax your vehicle at any time through the government website using your registration number and the reference on your V5C logbook.”
He also highlighted a lack of awareness that could catch EV drivers off guard: “The upcoming EV tax changes could take many drivers by surprise, as our survey shows that nearly half of Brits are completely unaware of them. While EVs offer long-term savings on fuel and maintenance, the high upfront cost remains a significant barrier. It’s also clear that charging infrastructure and concerns around battery life are still making some motorists hesitant about making the switch.
“For those considering an EV, it’s important to research all the financial aspects, including tax changes, running costs and available grants, before making a decision.”