This guide shows you how to avoid the 2025 road tax increases coming into force in April.
Significant changes to the UK’s Vehicle Excise Duty (VED), known as road tax, will impact electric and conventional vehicle owners. Understanding these changes and how to potentially delay increased costs can benefit many drivers.
2025 UK Road Tax (VED) Changes and How to Avoid Them
The new 2025 road tax, or official Vehicle Excise Duty (VED), will increase significantly for various vehicle categories in April. The hardest hit are EV owners. Here’s a clear breakdown of the current and future road tax charges, including the Expensive Car Supplement, and detailed calculations showing the cumulative increase in running costs over an average 4-year ownership period.
| Vehicle Type | Current Annual Rate (2024) | New Annual Rate (2025 road tax onwards) | 2025 road tax Annual Increase (£) | Total Increase over 4 Years (£) |
|---|
| Electric Vehicles (registered pre-Apr 2017) | £0 | £20 | +£20 | +£80 |
| Electric Vehicles (registered 2017 – Mar 2025) | £0 | £195 | +£195 | +£195 |
| Electric Vehicles (from April 2025) | £0 | £10 first year, £195 thereafter | +£10 / +£195 | +£595 |
| Standard Petrol/Diesel Vehicles (year 2 onwards) | £180 annually | £195 annually | +£15 | +£60 |
| Expensive Car Supplement (£40,000+ cars) | £355 annually | £410 annually (for 5 years) | +£55 per year | +£220 |
Why Target EV Owners With The 2025 Road Tax Hike
Electric vehicle (EV) owners may understandably feel unfairly impacted by the 2025 road tax (VED) change.
For several years, the UK government actively encouraged the switch to electric vehicles by offering significant incentives, including tax exemptions and grants, making EV ownership highly attractive.
However, the new 2025 road tax VED structure introduces charges even for previously exempt vehicles, meaning EV owners—who adopted electric cars believing they were investing in a long-term, tax-friendly choice—now face unexpected ongoing costs.
This shift has been perceived as contradictory by many, undermining earlier environmental commitments and penalising drivers who followed official recommendations. Such sudden policy changes could leave EV owners questioning the reliability of governmental promises, potentially dampening enthusiasm for further electric vehicle adoption, precisely when sustainable transportation remains a national priority.
Practical Example: Tesla Model 3 (£40,000)
How to avoid the 2025 road tax hike 3
| Year | Annual VED | Expensive Car Supplement | Total Annual Cost |
| First Year (2025) | £10 | £0 (exempt first year) | £10 |
| Second Year (2026) | £195 | £410 | £605 |
| Third Year (2027) | £195 | £410 | £605 |
| Fourth Year (2028) | £195 | £410 | £605 |
| Total Over 4 Years | £595 | £1,230 | £1,825 |
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How to Avoid or Delay the 2025 Road Tax Increase
You can renew your vehicle’s road tax early online, even if it’s currently taxed, to lock in the current, lower rate for up to an additional 12 months. This allows you to postpone facing the increased charges until your next renewal date.
Detailed Steps to Renew Early Online (Even if Already Taxed):
- Check Your Renewal Eligibility: Ensure your current tax expires around or shortly after the April 2025 changes.
- Visit the DVLA Tax Service: Go to the DVLA vehicle tax website.
- Enter Required Information: Input your vehicle registration number and the 12-digit reference number in your V5C logbook or V11 reminder letter.
- Renew Your Tax Early: Select the 12-month tax renewal option before the April 2025 deadline and complete your payment at the current lower rate. Your new tax period will start immediately after your current one ends.
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Frequently Asked Questions (FAQ)
Q: My car is currently taxed—can I renew it early online without cancelling first?
A: Yes, you can renew your car tax early online without cancelling your current tax. The new tax period will begin immediately after your current period ends.
Q: Will renewing my tax early online result in overlapping payments or double charges?
A: No, renewing early online does not result in double payments. The new tax period starts only after your current one finishes.
Q: What if my renewal date is significantly after April 2025?
A: If your renewal date is substantially later, renewing early might not be possible or practical. To maximise savings, renew as close to April 2025 as allowed.
Stay informed, plan, and keep your motoring costs down!