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Car tax changes take effect: EV owners to pay for first time

The change, introduced in the 2022 Autumn Statement by former Conservative Chancellor Jeremy Hunt, aims to make motoring taxation fairer.

Car Tax Changes: EV Owners Now Required to Pay for the First Time

Owners of electric vehicles registered on or after 1 April 2025 will pay £10 for the first year, followed by the standard VED rate of £195 from the second year. (Representational image: iStock)

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Vivek Mishra
By Vivek MishraApr 01, 2025
Vivek Mishra
Vivek Mishra works as an Assistant Editor with Eastern Eye and has over 13 years of experience in journalism. His areas of interest include politics, international affairs, current events, and sports. With a background in newsroom operations and editorial planning, he has reported and edited stories on major national and global developments.
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FROM today, 1 April 2025, electric cars, vans, and motorcycles in the UK will be subject to Vehicle Excise Duty (VED) for the first time.

The change, introduced in the 2022 Autumn Statement by former Conservative Chancellor Jeremy Hunt, aims to make motoring taxation fairer.

Owners of electric vehicles registered on or after 1 April 2025 will pay £10 for the first year, followed by the standard VED rate of £195 from the second year.

Vehicles registered between 1 April 2017 and 31 March 2025 will also pay the £195 standard rate from 1 April 2025.

Zero-emission vehicles registered between 1 March 2001 and 31 March 2017 will move to a £20 annual rate.

Electric vans will be taxed at the standard annual rate for light goods vehicles, currently £335, GB News reported.

Zero-emission motorcycles and tricycles will pay £25 annually.

Additionally, the £10 annual discount for hybrid and alternatively fuelled vehicles will be removed.

The DVLA has urged electric vehicle owners to ensure compliance with the new rules, sending letters to registered owners and launching a social media awareness campaign.

Experts have also warned drivers about potential scams related to vehicle taxation.

Rhydian Jones from Confused.com told GB News that five million fines were issued for untaxed vehicles between January 2021 and October 2024, amounting to over £500 million.

car taxcar tax ukelectric carshybrid vehicleslight goods vehiclestaxationukuk car taxuk ev taxvehicle excise dutyzeroemission vehicles

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