New DVLA car tax bands will mean drivers face new £600 charges within months. Experts have urged road users, motorists and drivers up and dwon the country to look out for new £600 charge for electric vehicle (EV) drivers in 2025, The DVLA has issued a crucial warning to electric vehicle (EV) drivers, as significant changes to vehicle tax regulations are set to take effect on 1 April 2025. Tax expert Andy Wood from Tax Natives provides insight into these developments that could see many motorists facing an annual tax bill of £600.
"Starting in 2025, all electric vehicles priced over £40,000 will incur a new surcharge, fundamentally altering the current tax structure," says Wood. "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.
" READ MORE Martin Lewis issues update on Ofgem rule change which could cut bills by £100 "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," he said. He highlights that "the £600 charge results from combining this standard rate with an additional �.