We reach the start of April 2025 and Tuesday 1st sees some changes come into effect relating to road tax.
From today, electric vehicles are no longer exempt from paying vehicle excise duty (car tax) and if registered between 1st April 2017 and 31st March 2025, are now subject to the same annual rate as any other petrol or diesel vehicle which is £195.
Electric vehicles plus zero or low-emission vehicles purchased after this date will keep the first year payment of £10 and then see their annual cost rise to the standard amount. There is a lower rate of £20 that is payable for these vehicles that were registered prior to 1st April 2017.
The low tax for vehicles emitting between 0-50g/km of CO2 is increasing, as is the tax for those emitting between 51-75 g/km of CO2. The RAC have clarified these amounts in their helpful article.
There is also the topic of the ‘Expensive Car Supplement’ which now applies to electric vehicles that are registered on or after 1st April 2025 and have a price exceeding £40,000. This is also known as the ‘luxury car tax’ and comes to £425 per year due.
Make sure you are up to date with these changes and be sure to give TMC a call if you need any assistance regarding fuel/EV charge reimbursement or vehicle compliance.