Millions of drivers urged to be ready for new £190 tax bill

Richard Guttridge

26 April 2024 at 4:37 am·2-min read

Millions of drivers are being warned to prepare for a new tax bill they will have to pay from next year. Owners of electric vehicles (EVs) will find themselves having to fork out a considerable sum of money from 2025 because of changes to road tax rules.

Previously, electric cars had been exempt from road tax as an incentive for people to buy them. But all that is going to change from next year and drivers of electric vehicles will have to start paying tax.

For those who aren't aware, it will be a good idea to prepare for how much they will have to spend. Most drivers will have to pay the standard road tax rate of £190.

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However, 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. But 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 April 1, 2017 and March 31, 2025 will be liable to pay the current standard rate of £190. The Government is changing the road tax rules following the growth in EV use over recent years.

The more electric cars that are on the road replacing older motors run on petrol and diesel means less money is paid in road tax under the current system and the Government losing out. Greg Wilson, 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 April 1, 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 April 1, 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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