A warning has been issued that the "vast majority" of electric vehicle (EV) owners in the UK are facing a steep £410 car tax bill as part of major upcoming changes. The alert has been issued by Auto Express ahead of the change. Starting from April 2025, EV drivers will have to pay Vehicle Excise Duty (VED), marking the first-time electric cars will be subject to this tax.
The moves aligns them with petrol and diesel vehicles' annual VED rates, reports the Express . Those in possession of higher-end models priced over £40,000 will need to fork out an additional luxury car tax, totaling an extra £410 annually from the second to the sixth year after purchasea significant hit for EV owners. Given the hefty cost price of many new EVs on the market, nearly all such vehicle owners could be affected.
READ MORE: Drivers could save £300 with 'simple to use' car dent hack solution Auto Express editor Paul Barker has issued a warning. He said: "Regardless of the price paid for a used EV, the car will be liable if it was originally bought for more than £40,000 (the current level for the VED), and the vast majority are going to be caught up in this extra charge. Some used EV buyers may not even know about the extra £410 a year cost until they go to tax their vehicles.
" The rise comes as new figures from a Freedom of Information request to the DVLA showed that currently, 31 per cent of motorists unexpectedly encounter the charge. However, under the current system, this could rise to 70 percent of electric models in a hefty blow to owners. This would add more than £2,000 in bills over five years but could crucially encourage many road users against transitioning to EVs.
Recent data from motoring experts at Carwow found that just 20 per cent of motorists were considering an electric vehicle as their next model. Meanwhile, around 43 per cent of those polled claimed costs were the biggest factor in their decision. Mr Barker said: "Private and used vehicle uptake of EVs is not yet in a position to start adding cost barriers; more needs to be done to encourage drivers to move to this still-fledgling technology, not give another reason to hold off from making the shift.
There are currently too many reasons for drivers to not make the switch, and this is yet another to add to the list." We are now bringing you the latest updates on WhatsApp first.
