Experts have issued a warning that upcoming car tax changes set to roll out across the UK next year will hit "hundreds of thousands" of motorists . This is particularly the case for electric vehicle (EV) owners who will be subject to Vehicle Excise Duty (VED) fees for the first time come next spring. The removal of a major incentive is expected to level the playing field, as EVs will incur the same standard VED charge as their petrol and diesel counterparts, which currently stands at £190 annually - a figure that might rise following a review next year.
The RAC , known for their breakdown expertise and car insurance advice, highlighted concerns that running costs for EV owners are set to increase, potentially catching many by surprise. They explained: "Electric vehicles (EVs) currently enjoy free road tax (also called Vehicle Excise Duty). However, from April 1 2025, drivers of electric cars in the UK will need to pay road tax for the first time.
" They further warned that the new 2025 VED rules will affect hundreds of thousands of EV owners by increasing their electric vehicle running costs. Additionally, a 'luxury car tax' could see many EV owners paying even higher fees, with vehicles valued over £40,000 subjected to a £410 charge for five years after the model is first registered. This could disproportionately impact EV owners due to the typically higher upfront costs associated with electric models compared to traditional combustion engine vehicles.
The RAC has warned .