DVLA warn drivers of possible £195 hike in duty fee in just weeks
Motorists have been alerted by the Driver and Vehicle Licensing Agency (DVLA) that they could have to pay a £195 fee in just a few months, thanks to a new rule on Vehicle Excise Duty (VED).
The government department, responsible for maintaining a database of drivers and vehicles in Great Britain, has announced a change to the VED that will impact drivers of electric, zero or low emission cars, vans and motorcycles.
At the moment, the owners of these types of vehicles are exempt from paying VED but this will change on April 1, 2025. On this date they will be liable for paying this tax in the same way owners of petrol and diesel motors are.
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That will mean a rise in bills for these motorists who were alerted to this by the DVLA through a post on X, formerly Twitter on Wednesday, as reported by Surrey Live. It said: "Information for drivers of electric and low emission cars: From 1 April 2025, you’ll need to pay vehicle tax. This will apply to both new and existing vehicles."
The post went on to explain that this is because of changes to the banding levels relating to VED. It said that this, "new measure removes band A under the existing VED system which is currently £0. Vehicles in this band will be required to move to the first band where a rate becomes payable."
Owners of an electric, zero or low emission car registered on or after April 1, 2025 will be required from this same date to pay the lowest first year rate of vehicle tax which is £10. But from the second tax payment onwards, this will move to the standard rate of £195.
For electric, zero or low emission cars registered between April 1, 2017, and March 31, 2025, the £195 rate will apply, and a £20 fee will be applicable for electric, zero or low emission cars registered between March 1, 2001, and March 31, 2017.
There is also an additional rate for "expensive cars". This means that new electric and zero emission vehicles registered on or after April 1, 2025, with the list price exceeding £40,000 "will attract the standard rate, plus the expensive car supplement" - an additional £410 in VED annually for the first five years of ownership.
Further DVLA guidance explains the £10 annual discount for hybrid and alternatively fuelled vehicles (AFVs) will be removed, and "the rate you will pay will depend on when the vehicle was first registered". For those registered before April 1, 2017, it says the rate will be based on the vehicle's CO2 emissions.
Owners of AFVs registered on or after April 1, 2017, will be charged the £195 standard rate. Most electric vans will move to the standard annual rate for light goods vehicles, and most electric motorcycles and tricycles will move to the annual rate for the smallest engine size.
You can check the current rates here.
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