Drivers in the UK are preparing for an increase in their motoring expenses as changes to Vehicle Excise Duty (VED) are scheduled to come into effect on April 1. Van owners, in particular, are expected to be impacted, facing potential bills that could rise as high as £345 due to adjustments in VED rates linked to the Retail Price Index (RPI) inflation.
According to a report from Express.co.uk, van drivers currently paying £335 annually will see a £10 rise in their fees. This increase is less steep than the £15 jump experienced in the previous year when fees climbed from £320.
Specialists in the automotive industry at Ayvens have raised concerns about the forthcoming “significant changes to vehicle tax” that will affect a wide range of British drivers, including both car and van owners. A spokesperson from Ayvens mentioned that in the initial year of registration, cars will pay a first-year rate of £10, while vans will be subject to a standard rate of £345.
Furthermore, on subsequent anniversaries of a vehicle’s registration, the standard rate will be applied. As of the 2025/26 tax year, this rate stands at £195 for cars and £345 for vans, with annual increases to align with inflation rates.
The usage of vans on UK roads has notably increased, with data from Zego indicating that the number of licensed vans has doubled to 4.6 million presently, up from 2.3 million in 1998. Looking forward to 2025, owners of electric cars will face a new challenge as VED fees will be introduced, ending current exemptions and potentially affecting those who have invested in electric vans.
Experts at Drive Electric have confirmed that electric vans will also be subject to road tax starting in April 2025. They highlighted that while light commercial EVs currently benefit from a zero-VED rate, they will soon be required to pay the same standard rates as other light goods vehicles.
This adjustment implies that businesses and individuals using electric vans should prepare for additional costs, although electric vans are expected to maintain lower running expenses compared to their petrol or diesel counterparts.