Electric car road tax warning: How much will I be paying?
Electric vehicle (EV) drivers have been urged to understand the extra road tax charges they’ll soon have to pay.
EV insurance experts at Quotezone.co.uk have cleared up the confusion over how much the new Vehicle Excise Duty (VED) charges will be from the 1st April 2025.
Electric vehicles and zero-emission cars are currently exempt from paying road tax, but from the 1st April 2025 these rules will change.
Experts are urging drivers who currently own or are planning on buying an electric vehicle to be aware of the changes.
In less than a year, electric vehicle drivers will be expected to pay a VED charge, as announced in the 2022 Autumn Budget.
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Any new low or zero-emission cars that are registered on the VED deadline (1st April 2025) will be charged the lowest rate, which is currently £10 a year.*
However, after the second year of registration, these vehicles will move to the standard VED rate – currently set at £190 a year.*
EV drivers who have first registered their vehicle between 1st April 2017 and 31st March 2025 will be liable to pay the current standard VED rate of £190.**
The Expensive Car Supplement scheme is also due to end in less than a year – this currently means cars with a list price of over £40,000 must pay a surcharge (£355) for the first five years of registration.***
The scheme is currently exempt for electric vehicles, however from the 1st April 2025 deadline, drivers of low and zero-emission cars must also pay the surcharge.
Greg Wilson, Founder and CEO of Quotezone.co.uk 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 the 1st April 2025.
“If you’ve been driving your zero-emissions car since April 2017 you will soon be subject to paying £190 of car tax.
“Anyone who registers their vehicle on the 1st April 2025 deadline will make them liable to pay the lowest rate (currently £10), which will be increased to £190 after the first year.
“These road tax charges will be affecting all current and future electric vehicle drivers so 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.”
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References:
*https://www.gov.uk/government/publications/introduction-of-vehicle-excise-duty-for-zero-emission-cars-vans-and-motorcycles-from-2025
**https://www.moneyhelper.org.uk/en/everyday-money/buying-and-running-a-car/car-tax-bands-explained
***https://commonslibrary.parliament.uk/research-briefings/cbp-9690/
This article is intended as generic information only and is not intended to apply to anybody’s specific circumstances, demands or needs. The views expressed are not intended to provide any financial service or to give any recommendation or advice. Products and services are only mentioned for illustrative rather than promotional purposes.
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