Car tax changes will see all UK drivers slapped with 'additional charges' and 'less than a year to prepare'

Car tax changes will see all UK drivers slapped with 'additional charges' and 'less than a year to prepare'

WATCH: Major car tax changes launching within months

Hemma Visavadia

By Hemma Visavadia

Published: 25/04/2024

- 10:20

EV owners will start paying tax in April next year

Electric car drivers have been warned they have less than a year to prepare for the upcoming tax changes which will see them pay the same as petrol and diesel motorists for their vehicles.

Coming into effect next April, electric car drivers will be subject to Vehicle Excise Duty (VED) which taxes cars based on their emissions output.

Cars with higher pollution rates are taxed more, but as EVs continue to hit the roads, drivers have been urged to check how much their vehicles could be charged.

Any new low or zero-emission cars registered with the DVLA before April 1, 2025, will be charged at the lowest VED rate of £10 a year, but only in a one-off payment from next year.

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An electric Mini charging on the street

Electric cars will have to pay VED from April 1, 2025


After the first year of registration, electric cars will move to the standard VED rate, which is currently set at £190 a year.

However, for EV drivers who first registered their vehicle between April 1, 2017, and March 31, 2025, they will have to pay the standard VED rate of £190, like petrol and diesel drivers.

Greg Wilson, founder and CEO of said: “Any current EV driver, or motorist who is planning on purchasing a zero-emissions vehicle must ensure they are aware of the upcoming additional charges they will face.

“Currently EVs are exempt from paying VED but drivers now have less than a year to prepare for the new charges which will be coming into place from April 1, 2025.”

The Expensive Car Supplement scheme is due to end next year which means vehicles worth over £40,000 must pay the new surcharge price of £410 for the first five years of registration.

Owners of Tesla vehicles, which usually cost more than £40,000 for new models, will be hit very hard by the charges.

EVs are currently exempt from paying the surcharge, but as the scheme ends next year, drivers of low and zero-emission cars will be forced to pay up.

Wilson added: “These road tax charges will be affecting all current and future electric vehicle drivers.

“It’s important for anyone planning to buy a zero-emissions car to know what they will be expected to pay in less than a year’s time and factor these changes into their decision-making process.”

The upcoming tax changes move electric vehicles out of the band A charges which is currently £0 and into band B which charges vehicles emitting between one to 50g/km of CO2 £10 or £30 for certain diesel models.

Andy Wood from Tax Natives explained how the “structured approach” to taxes aims to foster sustainability and fairness by ensuring that all vehicle owners pay their equal contribution.

He stated: “The tax system encourages responsible vehicle ownership by imposing additional charges on higher-value vehicles and aligns with broader environmental objectives."


Driver at the wheel in car

Electric vehicles owners are being urged to check their tax information


Despite EVs being charged to create a fairer tax system, the AA has warned that the VED payments may put off drivers from purchasing an electric car if they will now get taxed.

The AA suggested that to get more people interested in EVs, the Government should introduce a zero per cent loans on used cars (as in Scotland), as well as unveil scrappage schemes to help drivers earn money for moving to electric.

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