April 2025 car tax changes costing drivers almost | Tech News
New car tax changes which have been launched earlier this month might set drivers back up to £5,500 per yr. Vehicle Excise Duty (VED) updates got here into impact from April 1, 2025 with main updates affecting petrol, diesel and electric automobiles.
Standard VED charges elevated according to Retail Price Index (RPI) inflation with payments up from £190 to £195 per yr. Electric car homeowners have been additionally deeply affected with homeowners hit with VED costs for the very first time. However, probably the most dramatic tax updates affected first-year charges on petrol and diesel with many costs doubled.
Charges additionally rise based mostly on how a lot pollution automobiles emit with the dirtiest fashions paying the best charges.
It means these securing model new automobiles emitting over 255g/km of CO2 are most affected, with payments leaping up from £2,745 in yr one to £5,490.
Slightly much less polluting fashions emitting between 226 and 255g/km of CO2 can even be pressured to pay £4,680, up from the earlier determine of £2,340.
Vehicles producing between 191 and 225g/km pays £3,300 on the primary yr on the roads, a rise on the £1,650 beforehand paid.
Meanwhile, these securing the keys to model new electric car homeowners pays simply £10 in first-year VED charges.
Officials at HM Revenue and Customs confirmed that the transfer was supposed to “widen the difference” between EVs and combustion automobiles.
HMRC stated: “Vehicle Excise Duty first-year rates are paid for the first year of a car’s lifecycle, at the point of registration, and vary based on emissions.
“From 1 April 2025, the Vehicle Excise Duty first-year rates will be changed to widen the difference between zero-emission, hybrid and internal combustion engine cars.”
To keep away from being caught out, highway customers ought to make sure to test vehicle emissions earlier than finishing a sale.
To look up the emissions of a new vehicle, motorists can ask to look inside the V5C (vehicle registration doc).
However, this data also needs to be clearly offered on the labels subsequent to the automobiles in showrooms.
Meanwhile, emissions data will also be accessed by free online checkers by websites reminiscent of WeBuyAnyCar.
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