Motorists across the UK face significant changes to Vehicle Exercise Duty (VED) as the Driver and Vehicle Licensing Agency (DVLA) issues an urgent update regarding car tax. Starting April 1, 2025, all drivers, including those of electric and low-emission vehicles, will be required to pay vehicle tax. This shifts from the current exemption status for these vehicles.
The DVLA has emphasized that drivers must ensure their vehicles are taxed even if they do not owe any fees. The warning comes as the government prepares to implement new VED rates adjusted according to the Retail Price Index (RPI) for cars, motorcycles, and vans. The agency has encouraged motorists to renew their car tax as soon as possible to avoid potential fines.
As per data, currently, DVLA has revealed around 2.7 million vehicles are declared as SORN in the UK.
Motoring experts at Pete Barden explained, “If you never drive your car and you have a private driveway or other nonpublic space to store it, you do not need to pay road tax on the vehicle.
However, it must not be used on a public road or space at all. Additionally, you will need to let the DVLA know that this is the case by obtaining a statutory Off Road Notification—aka a SORN.”
Here the individuals who declared SORN will get the refund car tax for any outstanding months they will not use the car.
Under the new regulations, electric vehicles will no longer enjoy tax exemptions. Instead, they will incur a minimum first-year rate of 10 euros, with subsequent annual payments set at 195 euros. This change aims to create a more equitable taxation system across all vehicle types, as highlighted by former Chancellor Jeremy Hunt in 2022.
In addition to electric vehicles, hybrids, and other low-emission cars will see their tax rates increase significantly. For instance, cars emitting between 1 and 50 grams of CO2 per kilometre will face a first-year charge of 10 euros, while those emitting between 51 and 75 grams will pay 130 euros. Rates for vehicles producing over 76 grams of CO2 are expected to double from current levels.
The DVLA’s social media campaign spread the importance of compliance with the new regulations. Drivers are reminded that failure to register their vehicles for tax can lead to fines of 2500 euros and three penalty points on their driving licenses.
The upcoming changes encourage the adoption of zero-emission vehicles while ensuring that all motorists contribute fairly to road maintenance costs.
Chancellor Rachel Reeves stated that these measures are designed to ” Widen the differential between zero-emission, hybrid, and internal combustion engine (ICE) cars,” promoting a greener future for transportation in the UK.
As April approaches, drivers are urged to stay informed about these developments and prepare for the financial implications of the new car tax structure.
