DVLA issues warning to electric car drivers over new £600 charge

ok.co.uk:

The DVLA has issued a warning to electric vehicle (EV) drivers, as significant changes to vehicle tax regulations are set to take effect on 1 April 2025.

According to tax expert Andy Wood from Tax Natives, many motorists could face an annual tax bill of £600. Andy explained: "Starting in 2025, all-electric vehicles priced over £40,000 will incur a new surcharge, fundamentally altering the current tax structure.

Currently, many EVs benefit from a zero-rated Vehicle Excise Duty (VED), aimed at encouraging greener transport options. However, rising car prices mean a substantial number of models now fall into the luxury tax category, defined by a price exceeding £40,000." He continued: "The new tax framework indicates that any electric or low-emission vehicle registered after 1 April 2025 will incur the lowest first-year rate of vehicle tax, applicable to those with CO2 emissions between 1 and 50 g/km.

After the first payment, these vehicles will transition to a standard annual rate of £190, although this may change in 2025. "The £600 charge results from combining this standard rate with an additional £410 surcharge for vehicles over the £40,000 threshold.