The decision has been made to make the British motoring tax system ‘’fairer’’ for all. While lower motoring costs is one of the many benefits of switching to 100% green energy, continuing with the no tax on EV scheme would result in a significant loss in public spending.
Scrapping the exemptions will also support the UK’s funding in moving to electric - with 2035 seeing a ban on all new petrol and diesel cars on sale in the UK.
It’s worth noting that these changes will apply to all electric cars, vans, and motorcycles - including those for individual or company fleets.
- Any EVs registered on or after 1/4/25 will need to pay the lowest first year rate of VED of £10.
- From the second year, this will change to the standard rate of £180 per year.
- This standard rate will also apply to any zero emission cars that were registered between 1/4/17 to 31/3/25.
- The Expensive Car Supplement for EVs will also be scrapped come 2025, impacting models listed above £40,000.
- Zero and low emission cars (electric and hybrid) registered between 1/3/01 and 30/3/17 in Band A will transition to the Band B rate, which is £20 per year.
- As for electric van owners, they will be required to pay the same rate as petrol or diesel light goods - which is £290 per year.
- Electric motorcycles or bikes will only need to pay for their small engines, which is set at £22 per year.
- Any rates for Alternative Fuel Vehicles or hybrids will level out to meet the standard rates.
Despite this, the incentives created to support businesses in switching to electric will be staying. Hunt said, “Company car tax rates will remain lower for electric vehicles … and I will limit rate increases to 1% a year for three years from 2025.” So, if you’re a business leader looking to transition your fleets to electric, you can still expect to make great cost and carbon savings.
Zero carbon impact
Pure EVs have zero emissions, making them the most environmentally friendly form of transport available. You can play your part in net zero simply by making the switch.
Reduced running costs
As well as being cheaper to charge (when compared to petrol and diesel), EVs have fewer moving parts - meaning lower maintenance costs.
Fun to drive
Smooth, comfortable, and high-performing, EVs provide an all-round better driving experience to make each trip as enjoyable as the last.
Access to government grants
The UK government currently offers several grants to support the UK charging infrastructure - and this is all set to expand. Check out the schemes here.
As the EV revolution continues to evolve in preparation for the 2030 petrol and diesel ban, so do the advances in technology. There’s no better time to make the switch.
Free parking in various places
Many UK car parks offer free spaces designated specifically for EVs, most of which have charge points for you to power up while on the go.
Quieter on the roads
Reduced noise allows for a better driving experience, so you can enjoy your vehicle and the journey it takes you on.