DVLA issues alert to millions of drivers in huge 2025 rule change

The DVLA has issued an urgent warning to certain UK motorists just weeks after new car tax rules were introduced. The DVLA has reminded owners of electric and low-emission vehicles that they are now liable to pay Vehicle Excise Duty (VED) car tax under new updates.

Up until recently, EVs had been exempt from VED tax fees meaning road users could use the roads free of charge. However, the rules were updated earlier in the Spring with discounts and exemptions coming to an end on April 1, 2025. Most electric car owners will already be aware of the new rule change but some may only find out as their tax renewal date approaches.

The DVLA posted on social media site X: "If you’re a registered keeper of an electric or low emission vehicle, you need to pay vehicle tax."

It means most electric car owners must pay the standard VED fee which currently sits at £195 per annum.

GOV.UK explains: "Electric, zero and low emission cars, vans and motorcycles are now subject to the vehicle tax rates that were introduced on 1 April 2025.

"This change applies to both new and existing vehicles. The amount you’ll need to pay depends on the type of vehicle and when it was registered."

Any early adopters to the new technology could be set to benefit with EVs registered between 2001 and 2017 only paying £20 per year.

Owners with the keys to brand-new EVs will also enjoy a slight incentive with first-year rates set at just £10.

In comparison, many petrol and diesel owners are now forced to part with thousands of pounds in year one with many fees doubling.

However, those with the keys to pricey electric cars could end up paying higher fees due to the Expensive Car Supplement (ECS) fee.

This is an additional £425 charge applied to vehicles with a list price of over £40,000.

GOV.UK added: "New electric and zero emission vehicles registered on or after 1 April 2025 with the list price exceeding £40,000 attract the standard rate, plus the expensive car supplement for the first 5 years from the start of the second licence."