Motorists across the UK are being made aware of three updates to DVLA regulations, two of which are already in effect. Specialists caution that these revisions may have an impact on fuel expenses, vehicle taxes, and licence plates.
The DVLA and HMRC have rolled out a series of changes that drivers need to know about to steer clear of unwarranted fines or added costs. Key among these updates are the revamped Advisory Fuel Rates for company cars, the introduction of “25” registration plates, and a fresh tax on electric vehicles.
Experts at BigWantsYourCar.com have explained what these updates mean for motorists and how their financial situations might be affected.
New Advisory Fuel Rates introduced
HMRC updated its Advisory Fuel Rates (AFRs) on March 1, influencing the amount that employees can claim back for utilising a company car for work-related travel:
- Diesel cars up to 1,600cc: 11p per mile (ppm) → 12ppm
- Petrol cars (1,401-2,000cc): 14ppm → 15ppm
- Electric vehicles remain at 7ppm.
These adjustments imply that some drivers will witness an increase in their mileage costs, with even minor rises adding up over the long haul. A BigWantsYourCar.com spokesperson noted: “These changes to fuel reimbursement rates will add to the rising costs of running a company car. For many businesses and employees, even a small increase per mile can have a big impact, especially for those covering significant distances. Drivers may want to reassess whether their current vehicle is still the most cost-effective option.”
New “25” number plates
As of March 1, the latest “25” plates have been seen gracing newly registered vehicles, a badge of their year of registration. Those in the market for a personalised touch on their number plate should bear in mind the strict DVLA guidelines that come with it.
If rules are not adhered to, drivers risk a hefty £1,000 fine. The regulations cover everything from the number plate formatting and font style to the colour used. One clear stipulation is that a vehicle must not sport a plate that implies it’s younger than its actual age.
A spokesperson for BigWantsYourCar.com said: “New registration plates always mark a key time for the car market, as many drivers look to upgrade. This often results in an influx of used cars being sold, making March a great time for motorists to consider parting with their vehicles while demand is high. However, it’s crucial to ensure any custom plate adheres to DVLA regulations to avoid unnecessary fines.”
New tax charges for electric vehicles
In another turn for motorists, especially those who own electric vehicles (EVs), a new tax looms on the horizon. From the onset of April 1, EV owners will find themselves contending with Vehicle Excise Duty (VED) charges, which had previously passed them by. Brand-new EVs that roll out post-April 1, 2025, will incur a charge of £10 for their first year.
Adding to the costs for those driving more luxurious models, EVs valued above the £40,000 mark will also be subject to the Expensive Car Supplement – which means shelling out an additional £195 from 2025. This shift is set to diminish the monetary appeal of going electric, potentially swaying some drivers to rethink their eco-friendly transport solutions.
The spokesperson commented: “The introduction of tax on electric vehicles is a significant shift that many EV owners may not have anticipated. While the initial £10 charge is relatively low, the Expensive Car Supplement for higher-value EVs could make some drivers rethink their options. With the used car market still seeing strong demand, those with premium EVs may want to explore selling sooner rather than later to avoid future costs.”
How to navigate these changes
The spokesperson suggested: “With these new DVLA rules coming into force, it’s more important than ever for drivers to stay informed. Whether it’s tax changes, fuel costs, or new number plate rules, failing to adapt could mean unnecessary expenses. For those looking to switch vehicles, sell their car, or upgrade to something more cost-efficient, now could be a great time to explore their options.”