From April, electric vehicle owners will be receiving DVLA car tax letters for the very first time.
A shift in legislation will align EV owners with petrol and diesel motorists under the same vehicle tax regulations, leading to the arrival of tax bills in their mail. Owners are looking at an approximate yearly fee of £195, equalling the cost shouldered by traditional vehicle drivers.
The Government has justified the move as a way to balance the tax system across all drivers. Previously, the exemption from vehicle taxation was considered an incentive for going electric, yet the upcoming changes mark an end to this benefit.
Electric car owners are being nudged to sidestep the impending tax charges by renewing their tax online gratis before the changes take place in April. Alongside, new automobiles will experience substantial rises in the first-year tax rates, taking a larger toll on those who own particularly high-emission vehicles.
The RAC said: “Electric vehicles currently enjoy free road tax (also called Vehicle Excise Duty). However, from April 1, 2025, drivers of electric cars in the UK will need to pay for road tax for the first time.
“The new 2025 VED rules will impact hundreds of thousands of EV owners and their electric vehicle running costs.” Drivers of electric vehicles are set to face new costs as changes to road tax come into effect.
For the first time, they will be subject to a car tax supplement if their vehicle’s list price is over £40,000, reports Birmingham Live.
The changes include: “As well as paying for road tax for the first time, there will also be an expensive car tax supplement for electric cars with a list price that exceeds £40,000.”
Many will be affected retroactively, as explained: “Many of the road tax changes will be backdated, which means drivers who have never paid for VED before will be required to do so after April 1, 2025.”
Currently, electric vehicle owners don’t pay road tax but must still register: “At the moment, drivers of electric vehicles do not have to pay for road tax; however, they must still get their vehicle taxed – even if they do not need to pay any money to do so.
“From April 1, 2025, drivers of electric vehicles will need to pay for VED – road tax for the first time. For most EV drivers, this will be £195 a year, while drivers of new electric cars with a list price that exceeds £40,000 could pay as much as £620 a year.”
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