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Motorists are being warned about changes to vehicle tax in April and are urged to check if they will be affected. Drivers of new petrol, diesel and hybrid vehicles are set to face higher
first-year tax rates following the Budget. The government website says that from April 1, 2025, registered keepers of electric, zero or low emission cars, vans and motorcycles will need to
pay vehicle tax in the same way as registered keepers of petrol and diesel vehicles. This change will apply to both new and existing vehicles. Electric vehicles (EVs) are set to incur
Vehicle Excise Duty (VED) charges for the first time. VED is a tax levied on every vehicle using public roads in the UK and is collected by the Driver and Vehicle Licensing Agency (DVLA).
The fees will rise in line with the Retail Price Index (RPI) inflation from April 1. HM Revenue and Customs (HMRC) has said that while rates "will remain unchanged in real terms",
the scheme will "impact" vehicle owners, reports the Liverpool Echo. The DVSA has also warned drivers that a new driving licence rule will come into effect at the start of February
and "is likely to affect thousands of drivers" in the UK. The changes, which were consulted on by the Government in 2023, will be implemented in phases in 2024 and 2025. The
electric vehicles will be aligned with traditional vehicles in terms of standard rates, including initial-year tariffs and the Expensive Car Supplement (ECS). Social media messages from the
DVLA have said: "Vehicle tax is changing for electric and low emission vehicles from 1 April 2025. Drivers will need to pay vehicle tax in the same way as those of petrol and diesel
vehicles. This will apply to both new and existing vehicles." GET ALL THE LATEST MONEY NEWS AND BUDGETING TIPS FROM CHRONICLE LIVE WITH OUR FREE NEWSLETTER HOW THE CHANGES WILL AFFECT
YOUR VEHICLE ELECTRIC, ZERO OR LOW EMISSION CARS REGISTERED ON OR AFTER 1 APRIL 2025 Drivers will need to pay the lowest first year rate of vehicle tax which is £10 from April 1, 2025. From
the second tax payment onwards, drivers will pay the standard rate of £195. Those with electric, zero or low emission cars registered between 1 April 2017 and 31 March 2025 will also pay the
standard rate of £195. And drivers who own older electric, zero or low emission cars registered between 1 March 2001 and 31 March 2017 will move to the first band that has a VED value,
which will be £20. HYBRID AND ALTERNATIVELY FUELLED VEHICLES (AFVS) The £10 annual discount for hybrid and AFVs will be removed, and the rate you will pay will depend on when the vehicle was
first registered. If the vehicle was: registered before 1 April 2017 - this rate will depend on the vehicle’s CO2 emissions. If it was registered on or after 1 April 2017 - you will pay the
standard rate (this will be £195).