DVLA Monday alert over ‘expensive’ tax mistake | Tech News
Drivers are being warned to not fall into a pricey tax lure, after the Driver and Vehicle Licensing Agency (DVLA) issued a recent alert on the foundations.
The company mentioned motorists shopping for an electric vehicle should test the official record price rigorously – or risk being hit with tons of of kilos in further fees annually. In a social media post on Monday, it mentioned: “Electric cars priced £50,000 or under are no longer subject to the expensive car supplement if they were first registered from April 1 2025.”
But crucially, autos above that threshold are usually not spared.
The fees defined
From April 2025, electric vehicles are no longer totally exempt from Vehicle Excise Duty (VED), bringing them broadly into line with petrol and diesel fashions.
The prices break down as follows:
- First 12 months: £10
- Standard fee (from 12 months two): £200 per 12 months
However, for vehicles with a record price above £50,000:
- Standard fee: £200
- Expensive car complement: £440
- Total: £640 a 12 months for 5 years
That further charge applies from the second to the sixth 12 months of possession.
Why that is such an ‘expensive mistake’
A driver selecting an EV slightly below the £50,000 threshold will sometimes pay round £200 a 12 months. But go simply over the road and the invoice jumps to £640 a 12 months for 5 years
That quantities to an further £2,200 over the period – purely as a result of of the record price.
Crucially, it’s the official record price earlier than reductions that determines the tax band, not what the customer truly pays.
Falling EV costs scale back the risk
The warning comes as electric car costs are dropping quickly, making it simpler for patrons to remain under the brink.
Data from the Society of Motor Manufacturers and Traders reveals EV gross sales persevering with to rise strongly towards the background of the larger availability of lower-cost fashions
Meanwhile, the used market has seen significantly sharp price falls, with second-hand EVs depreciating quicker than many petrol equivalents resulting from growing provide.
Chinese manufacturers driving down prices
A key drive behind the price shift is elevated competitors – particularly from Chinese producers.
Brands corresponding to BYD and MG Motor have launched more reasonably priced electric fashions within the UK, serving to to push costs down throughout the market.
Their growth has intensified competitors and compelled established car makers to reply with reductions and cheaper entry-level EVs.
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