Andy Wood, of financial network service Tax Natives, commented on the new car tax bands set to revolutionise road taxation as he explained: “With the upcoming introduction of Vehicle Excise Duty (VED) for electric and low-emission vehicles in April 2025, the Government is aiming to ensure the system of vehicle taxation is ‘fair’ for all motorists, as highlighted by former Chancellor Jeremy Hunt in the 2022 Autumn Statement.”
“While the change is a significant shift, many drivers may not be prepared for the extra cost, and it’s essential to check your vehicle’s tax status ahead of time to avoid surprises.”
Motorists are gearing up for a potential windfall as revised car tax bands could see some bills plummet to a delightful £0. In less than two years, changes dictated by the new Labour government that more who take to the roads would have to cough up the road tax from April 2025, might surprisingly trim down costs in 2024.
On top of this, thousands of vehicles, including vintage and agricultural ones and those used by disabled drivers, will still enjoy an exemption from this fee. With Chancellor Rachel Reeves poised to set out her Autumn Budget and lay down the fiscal expectations on October 30, Brits are bracing for a shake-up of the current system.
Andy highlighted the importance of compliance, saying: “Even vehicles that are currently exempt will still require owners to make sure they fall under the correct category. It’s particularly vital for owners of ‘limited use’ vehicles – those used in agriculture, horticulture, or forestry with restricted road travel distances – to ensure they meet the criteria outlined in the V355/1 DVLA document. Failing to adhere to these requirements could lead to losing their tax-exempt status.”, reports Birmingham Live.
