Motoring experts have identified upcoming changes that could impact drivers – with electric vehicle owners potentially facing the biggest changes.
One change is a rise in company car taxes from April as well as the end of the road tax exemption for electric vehicles.
Motoring specialists at LeaseLoco.com have highlighted the upcoming reforms that will have an impact on drivers across the UK in 2025.
From April 2025, EVs will lose their exemption from Vehicle Excise Duty (VED), also known as road tax and from December, the London Congestion Charge exemption will also end, adding a £15 daily cost for city driving.
One – a change in speed restrictions – will mean some drivers face an instant £100 fine.
John Wilmot, CEO of car leasing comparison site LeaseLoco, said: “These upcoming changes show a significant shift in how vehicle ownership is incentivised and regulated in the UK – particularly for electric vehicles.
“While many of the measures are aimed at improving infrastructure and safety, they also reflect a move towards equalising the playing field between EVs and traditional petrol or diesel vehicles.
“For many drivers, these incentives were a major factor in the decision to transition to electric. So it’s possible that these changes could actually slow the momentum of EV adoption, particularly among drivers who were on the fence about making the switch.”
He added: “But on the positive side, the new reliability standards for EV charging infrastructure could address a long standing concern.”
Here Express.co.uk sets out the eight main changes to fees for drivers.
1. Fuel duty freeze continues
In the Autumn Budget, Chancellor Rachel Reeves confirmed that the fuel duty freeze will remain in place, with the existing 5p discount extended through 2025 and 2026. This decision keeps fuel duty at 52.95p per litre for at least another two years. Fuel duty directly impacts the cost of petrol and diesel, making it a significant factor in overall fuel prices for consumers. Higher duty increases costs at the pump, while freezes or cuts can provide financial relief.
2. Company car tax rises
Company car drivers should prepare for changes to Benefit-in-Kind (BiK) tax rates starting in April 2025. BiK rates for all vehicles will increase by 1%, with electric vehicles rising from 2% to 3%. Higher-emission vehicles will see even larger increases, impacting costs for company car drivers across the board.
3. Electric vehicles will lose their tax-free perk
From 1 April 2025, electric vehicles (EVs) will no longer be exempt from Vehicle Excise Duty (VED), marking a significant change for EV owners. Newly registered EVs will be subject to a £10 VED charge in the first year, increasing to £195 annually from the second year onwards. Additionally, EVs with a value exceeding £40,000 will incur an extra charge of £410 per year for five years under the expensive car supplement.
4. London congestion charge exemptions will be scrapped
Electric vehicle (EV) drivers are set to face another financial blow as the era of free city driving comes to an end. From 25 December 2025, all vehicles, including electric and hydrogen powered models, will be required to pay the £15 London Congestion Charge. Previously, electric car owners could pay £10 to receive an exemption to the Congestion Charge.
However, it’s worth noting that there’s no Congestion Charge from December 25 to January 1, so this charge properly comes into effect from January 2 2026.
5. New fines for non-compliant EV chargers
But it’s not all bad for EV drivers, as charging infrastructure across the UK is set to improve. From 2025, EV charging providers will be required to meet new government standards for reliability, accessibility, and ease of payment, with the aim of enhancing the charging experience for EV drivers and ensuring consistent access to reliable infrastructure nationwide. Providers failing to comply could face fines of up to £10,000 per charger.
6. New fuel finder scheme
By the end of 2025, all petrol stations in the UK will be required to share real time fuel prices through the new ‘Fuel Finder’ scheme. The initiative aims to help drivers identify the best places to fill up and save on fuel costs.
7. Mandatory HGV permits in London
From May 4 2025, all HGVs operating in Greater London will be required to hold a safety permit under Transport for London’s Direct Vision Standard (DVS). The permits, which are free of charge, assess a driver’s visibility of vulnerable road users, including cyclists and pedestrians. HGVs with limited visibility will need to be equipped with additional safety features, such as cameras and sensors, to meet the permit requirements.
8. Scotland’s 20mph speed limit
Scotland will roll out a nationwide default speed limit of 20mph in urban and residential areas in 2025. This change is designed to improve pedestrian and cyclist safety and reduce accident rates. The fine for not adhering is £100 and 3 penalty points.
