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Q01278: What are the changes to vehicle tax for electric and low emission vehicles from 2025?

Answer
From 1 April 2025, drivers of electric and low emission cars, vans and motorcycles will need to pay vehicle tax in the same way as drivers of petrol and diesel vehicles. This change will apply to both new and existing vehicles.
 
This new measure effectively removes band A under the existing VED system which is currently £0. Vehicles in this band will be required to move to the first band where a rate becomes payable.
 
How the changes will affect your vehicle:
 
Electric and low emission cars registered on or after 1 April 2025 – you will need to pay the lowest first year rate of vehicle tax (which applies to vehicles with CO2 emissions 1 to 50g/km). From the second tax payment onwards, these vehicles will pay the standard rate. This is £190 for 2024 but is subject to change for 2025.
 
Electric and low emission cars registered between 1 April 2017 and 31 March 2025 – you will pay the standard rate. This is £190 for 2024 but is subject to change for 2025.
 
Electric and low emission cars registered between 1 March 2001 and 31 March 2017– these vehicles will move to the first band that has a VED value. This is £20 for 2024 but is subject to change for 2025.
 
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 (check the current rates for this vehicle)
  • registered on or after 1 April 2017 - you will pay the standard rate (this is £190 for 2024 but is subject to change for 2025)
Electric vans – most electric vans will move to the standard annual rate for light goods vehicles. Check the current rates for this vehicle.
 
Electric motorcycles – electric motorcycles and tricycles will move to the annual rate for the smallest engine size. Check the current rates for this vehicle.
 
Additional rate (expensive car supplement) – for new electric vehicles with a list price exceeding £40,000, you will now need to pay the expensive car supplement from the second tax payment onwards. This applies to vehicles registered on or after 1 April 2025.
 
Above information supplied by DVLA/.gov
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Answer

You can report unlicensed vehicles online through the DVLA website, see website in related information.

You can also contact your local police (via 101) although the procedure will vary from force to force. In some areas you will have to contact the local authority direct as they have a responsibility to remove such vehicles. In other force areas you need to contact the local police force first who in turn will contact the local authority. Your local police station will be able to advise you.

In all cases you will need the make and model of the car, the registration number and the location.

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Answer

A number of vehicles are exempt from the requirement to pay tax - the main ones are:

  • Vehicles used by someone who is disabled
  • Electrically assisted pedal cycles
  • Vehicles going to/from a pre-arranged MOT - see Q360
  • Police, fire and ambulance vehicles
  • Mobility scooters/invalid carriages
  • Historic vehicles - vehicles constructed 40 or more years ago
  • Electric vehicles
  • Mowing machines
  • Steam-powered vehicles
  • Vehicles used for agriculture, horticulture and forestry
  • Gritters and snowploughs

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Answer

Yes. Any driver who drives a vehicle, whether it belongs to them or not, has a responsibility to ensure that they are insured to drive the vehicle, that the vehicle is fully road legal, taxed and MOT'd.

If you are stopped by the police it is you as the driver who will face prosecution. Under certain circumstances the keeper may also be prosecuted.

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Answer

Mechanically propelled vehicles on a public road are required to display number plates (number plate in the case of motorcycles). Covering the vehicle could prevent them from being seen and this would be an offence.

It would be legal to cover the vehicle as long as the registration plates could be seen. Clear plastic panels could be used in the appropriate places to enable the registration plates to be visible.

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Answer

The legal requirement to display a tax disc on a vehicle ended on 1st October 2014. However, drivers with a Northern Ireland address will still need to display their MoT disc.

You can apply online to tax or SORN your vehicle using your 16 digit reference number from your vehicle tax renewal reminder (V11) or 11 digit reference number from your log book (V5C).

What this means to you
To drive or keep a vehicle on the road you will still need to get vehicle tax and the DVLA will still send you a renewal reminder when your vehicle tax is due to expire. This applies to all types of vehicles including those that are exempt from payment of vehicle tax.

Buying a vehicle
When you buy a vehicle the vehicle tax is no longer transferred with it so you must tax your vehicle immediately before you drive it. You can do this by using the New Keeper Supplement (V5C/2) part of the vehicle registration certificate (V5C) online, by using the DVLA's automated phone service (24 hours a day, 7 days a week) or at selected Post Offices – see Q911 for more information about these options.

Selling a vehicle
If you sell a vehicle and you have notified DVLA, you will automatically get a refund for any full calendar months left on the vehicle tax. If you fail to notify a change in the owner of a vehicle you could face a fine of up to £1000 and will still be liable for any speeding/parking fines and tax for the car.

Vehicle tax refunds
If you tell the DVLA you no longer have a vehicle or it's off-road, you'll get a refund for any full months of remaining tax. The refund is calculated from the date the DVLA receives the information and the payment will be sent to name and address in the vehicles registration document.

You must tell the DVLA if your vehicle has been:

  • sold or transferred
  • taken off-road - SORN
  • written off by your insurers
  • scrapped
  • stolen
  • exported
  • registered as an exempt vehicle

Paying vehicle tax by Direct Debit
As well as paying your car tax every 6 months or yearly, you can now pay by monthly direct debit. Provided an MOT remains valid, the payments will continue automatically until you tell DVLA to stop taking them or you cancel the Direct Debit with your bank. Valid insurance should also be in place for vehicles registered in Northern Ireland.

The Direct Debit will be cancelled and payments automatically stopped when you tell DVLA that you no longer have the vehicle, or the vehicle has been taken off the road and a Statutory Off Road Notification (SORN) has been made.

If you do decide to pay by Direct Debit you will pay an extra 5%. So if your car tax costs £175 per year, you will pay an extra £8.75.

When the Direct Debit scheme can't be used
Paying by Direct Debit will not be available to:

  • first registration vehicles
  • fleet schemes
  • HGVs (paying the Road User Levy)

Checking the tax status of a vehicle
You can check the tax status of any vehicle online. This can also be used for rental vehicles.

Enforcement
Just because you don't have to display a tax disc doesn't mean you can get away with not paying it, if anything you're more likely to be caught now than before. The DVLA has a digital record of payments and a paper tax disc is no longer necessary as proof. Automatic number plate recognition cameras will spot you if you haven't paid your tax.

 

 

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Question

Q01278: What are the changes to vehicle tax for electric and low emission vehicles from 2025?

Answer

From 1 April 2025, drivers of electric and low emission cars, vans and motorcycles will need to pay vehicle tax in the same way as drivers of petrol and diesel vehicles. This change will apply to both new and existing vehicles.
 
This new measure effectively removes band A under the existing VED system which is currently £0. Vehicles in this band will be required to move to the first band where a rate becomes payable.
 
How the changes will affect your vehicle:
 
Electric and low emission cars registered on or after 1 April 2025 – you will need to pay the lowest first year rate of vehicle tax (which applies to vehicles with CO2 emissions 1 to 50g/km). From the second tax payment onwards, these vehicles will pay the standard rate. This is £190 for 2024 but is subject to change for 2025.
 
Electric and low emission cars registered between 1 April 2017 and 31 March 2025 – you will pay the standard rate. This is £190 for 2024 but is subject to change for 2025.
 
Electric and low emission cars registered between 1 March 2001 and 31 March 2017– these vehicles will move to the first band that has a VED value. This is £20 for 2024 but is subject to change for 2025.
 
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 (check the current rates for this vehicle)
  • registered on or after 1 April 2017 - you will pay the standard rate (this is £190 for 2024 but is subject to change for 2025)
Electric vans – most electric vans will move to the standard annual rate for light goods vehicles. Check the current rates for this vehicle.
 
Electric motorcycles – electric motorcycles and tricycles will move to the annual rate for the smallest engine size. Check the current rates for this vehicle.
 
Additional rate (expensive car supplement) – for new electric vehicles with a list price exceeding £40,000, you will now need to pay the expensive car supplement from the second tax payment onwards. This applies to vehicles registered on or after 1 April 2025.
 
Above information supplied by DVLA/.gov
 
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