A million drivers across the UK have been warned that they will need to pay for their vehicle after no longer being exempt from tax. New rules coming into place mean that owners of electric or low emission vehicles will be required to pay vehicle tax to the DVLA. These changes, which were introduce on April 1 of this year, apply to both new and existing vehicles.
However, the amount people will need to pay will vary depending on the type of vehicle they own and when it was registered. For electric and low emission cars registered on or after April 1, owners will be required to pay the lowest first year rate of vehicle tax, with a much higher rate needing to be paid afterwards. RAC data from December 2024 said there were around 1.3 million EVs on the road in the UK.
Meanwhile, those who registered an electric or low emission car between April 1 2017 and March 31, 2025 will pay a a higher rate while some other who have a vehicle registered before this will pay much less.
Full car tax rates for electric and low emission vehicles
Registered on or after April 1, 2025
Vehicles registered on or after this date will pay the lowest rate in the first year which is currently set at £10. However, all payments after this will be set at the standard rate of £195.
Registered on between April 1, 207 and March 31, 2025
All electric and low emission vehicles registered between these dates will only pay the standard rate of £195.
Registered between March 1, 2001 and March 31, 2017
These vehicles pay a much lower tax rate of £20.
Will this make electric vehicles more expensive to run?
Previously, many electric and low-emission cars were exempt from paying car tax which increased the incentive for purchasing them. It also made them much cheaper to run when compared to petrol and diesel cars.
However, while car tax will now need to be paid, EVs still benefit from generally cheaper insurance and are still excluded from paying a charge if they drive through a clean air zone (ULEZ).
Currently, these zones are sill operating across the country, including these major cities:
- Bath
- Birmingham
- Bradford
- Bristol
- Portsmouth
- Sheffield
- Tyneside – Newcastle and Gateshead
Further details on tax for electric and low emission vehicles, as well as vans and motorcycles and be found online here.
