Major changes to road tax are set to come into effect from April 2025, with around a million drivers expected to pay for the first time. Owners of some of the most popular models are being urged to prepare for these changes to avoid any surprises when they are informed of their new obligations.
From April, owners of electric vehicles (EVs), who have so far been exempt from car tax, will be required to pay. This change will see EV owners paying the flat £190 rate currently paid by petrol and diesel drivers.
While this may be a source of frustration for EV drivers, the Government has decided that it is time to start collecting tax from electric cars, with around 1.3 million people believed to drive one in the UK. The tax-free status of EVs was not sustainable in the long term, reports Birmingham Live.
With an increasing number of EVs on the roads each year, the Government risked losing significant amounts of tax revenue. Ministers argue that the change will make the tax system “fair” for all motorists.
The change will affect all EVs. The Government stated: “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 internal combustion engine (ICE) vehicles do. This change will apply to both new and existing vehicles and will ensure all drivers begin to pay a fairer tax contribution.
“Electric and low-emission cars registered between April 1, 2017 and March 31, 2025: You will pay the standard rate. This is £190 for 2024 but is subject to change for 2025.”