The DVLA has sent out a critical alert about upcoming car tax changes that will see motorists shelling out an additional £600 annually. Set to take effect in April next year under the new Labour government, these revisions aim to overhaul Vehicle Excise Duty (VED) rates to establish a “fairer” system.
Over a million UK drivers are set to be impacted by this significant update.
Electric vehicle owners, who have been exempt, will now have to pay VED just like their petrol and diesel counterparts. The DVLA is already reaching out to electric car, van, and motorcycle owners to inform them of the changes.
A letter from the agency explains: “When the time comes to tax your electric vehicle, your vehicle tax will be calculated automatically, and you’ll receive a reminder.”
Advocates for electric vehicles are urging the government to rethink the imposition of this fee, noting that it would affect around two-thirds of electric models sold in the UK, including popular ones such as the Tesla Model Y, reports Birmingham Live.
According to the government’s official website: “From April 1, 2025, drivers of electric and low emission cars, vans and motorcycles will need to pay vehicle tax in the same way as drivers of petrol and diesel vehicles. This change will apply to both new and existing vehicles.”
The site further clarifies that this adjustment will effectively eliminate the current band A (£0 tax rate) from the VED system, requiring vehicles in this category to transition to the first payable rate band.
The DVLA has clarified that while it is responsible for administering and collecting vehicle tax, the decisions regarding this tax are made by the Chancellor of the Exchequer, not the DVLA. It has also been suggested that owners of high-end electric vehicles could be subject to a luxury vehicle tax from 2025.
This additional £410 tax, which is currently applied to petrol and diesel vehicles costing over £40,000 in their first five years after registration, could result in some electric vehicle owners paying an annual fee of £600.
