The DVLA has started to send letters to electric vehicle owners, warning them of an upcoming change to the way their car will be taxed.
Whilst the Government has reassured drivers that they will not be introducing a pay-per-mile tax system in the October Budget, the exemption on electric vehicles is set to end in 2025.
Posting in the Reddit group r/CarTalkUK, the electric car owner Technical_Outcome_14 highlighted that he received a letter from the DVLA highlighting the change.
They wrote: “We’re writing to let you know that as the registered keeper of the above electric vehicle, from April 1 2025 you will need to pay vehicle tax in the same way as existing drivers of petrol and diesel vehicles.
“This vehicle tax charge will apply to all new and existing electric cars, vans and motorcycles. You do not need to do anything now. When the time comes to tax your electric vehicle (on or after April 1 2025), your vehicle tax will be calculated automatically, and you’ll receive a reminder.”
When mass-produced electric models entered the market, the Government offered a number of incentives to encourage buyers to make the switch.
However, with the number of EVs on the UK roads growing, these incentives have slowly been phased out, with tax exemption being one of the final bonuses private EV buyers can take advantage of.
Electric car owners will need to pay for their road tax for the first time from April 1 2025 or whenever the current tax policy on their vehicle expires.
Currently, it is unknown how much the DVLA will charge electric vehicle owners, with the organisation’s letter stating it will be based on two factors.
They added: “The rate of vehicle tax for your electric vehicle will depend on when the vehicle was first registered and what type of vehicle it is (car, motorcycle or van).”
If the DVLA uses the same flat rate as petrol and diesel vehicles that are one or more years old, electric vehicle owners will most likely pay £190 per year for tax. However, owners of some of the higher end electric models will also be subject to luxury vehicle tax from 2025.
Currently applied to petrol and diesel models, this £410 tax applies to any vehicle with a retail price of over £40,000 for the first five years of its life. As a result, owners of a large electric vehicle may soon need to pay £600 per year.
Some electric vehicle supporters have urged the Government to drop this charge on electric vehicles, with around two thirds of models sold in the UK, including the ever-popular Tesla Model Y, subject to the fee.
The Government website said: “From 1 April 2025, drivers of electric and low emission cars, vans and motorcycles will need to pay vehicle tax in the same way as drivers of petrol and diesel vehicles. This change will apply to both new and existing vehicles.
“This new measure effectively removes band A under the existing VED system which is currently £0. Vehicles in this band will be required to move to the first band where a rate becomes payable.”
