Motorists have been warned that they could face a £600 charge due to changes in vehicle tax next year. Tax experts at Tax Natives have cautioned that the changes, which will be introduced by the DVLA from April 1, 2025, could affect drivers of electric vehicles (EVs). From next year, all EVs priced over £40,000 will be subject to a new surcharge, which tax expert Andy Wood says will "fundamentally alter the current tax structure".
At present, many EVs are exempt from Vehicle Excise Duty (VED), also known as car tax, as part of efforts to promote greener transport options. However, due to increasing car prices, a significant number of models now fall into the "luxury tax" category, defined by a price tag of more than £40,000, reports the Mirror . Andy explained: "The new tax framework indicates that any electric or low-emission vehicle registered after April 1 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 tax expert cautioned that the £600 charge is a result of combining the standard rate with an additional £410 surcharge for vehicles exceeding the £40,000 threshold. He stated: "With the average price of new electric vehicles now around £40,000, compared to £30,000 for traditional internal combustion engine vehicle, more than half of newly registered EVs will be impa.