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Electric Cars Must Pay VED from 2025

From 2025, electric car owners in the UK will start paying an annual vehicle excise duty (VED) fee. The VED policy has sparked concern about its possible impact on people considering transitioning to electric cars, thus impeding efforts to combat climate change. In this blog post, we will delve into the implications of the VED changes for electric car owners in the UK

What is VED?

VED is also known as car tax or road tax. UK drivers are obligated to pay this on their vehicles to use public roads legally. The amount varies depending on your car and factors which include vehicle type, registration date, and emission level. VED goes towards enhancing and sustaining the country’s road infrastructure. 

VED or road tax for electric vehicles

Why is it Being Introduced for Electric Cars?

As electric vehicles become more popular, the government is losing revenue from fuel duty and other taxes that were previously applied to traditional vehicles. Therefore they have decided to introduce a tax on electric vehicles to cover the lost revenue and ensure that it contributes to the upkeep and maintenance of the country’s road infrastructure.

It will come into place from the 1st of April 2025.

How Much will the Electric Car Tax be?

Fully electric vehicles registered on or after April 1st, 2017 will qualify for the lowest first-year rate, which is set at £10 per year.

After the first year of registration, electric cars will then pay the standard annual tax fee, which is considerably more.

The standard car road tax rate is, at the time of writing, £165, but by the time the electric car road tax change is implemented in 2025, the lowest first year and standard car road tax rates may be higher. To find out more information about it, click here

Tags: *Electric_car *VED *road_tax *vehicle_tax *ev_news

Written by Lois | 2 min read
11 May 2023