From April 2025, electric vehicles (EVs) will no longer be exempt from road tax (VED), as confirmed by the Government. Any EVs registered from 1 April 2025 onwards will pay an initial tax of £10 in the first year, followed by an annual charge of £195 from the second year onwards.
Existing EV owners won’t escape the changes either. Vehicles registered between 1 April 2017 and 31 March 2025 will also be subject to the £195 annual charge from their next tax renewal after April 2025. Older electric cars, registered between March 2001 and March 2017, will fall into Band B, meaning their road tax will be set at £20 per year.
Additionally, the ‘Expensive Car Supplement’ (ECS) will now apply to electric cars costing over £40,000, removing their previous exemption. This adds an extra £355 per year for the first five years of ownership. With Auto Trader data showing that around two-thirds of new EVs exceed this price threshold, many buyers will be affected.
Hybrid vehicles will also see a sharp increase in road tax rates. Those emitting between 1-50g/km of CO2 will see their first-year tax jump from £10 to £110, while those in the 51-75g/km category will see an increase from £30 to £130. Cars emitting more than 75g/km will face even steeper rises. For example, vehicles producing 151-170g/km of CO2 will see their first-year tax double from £680 to £1,360. In fact, every band above 76g/km will see a significant increase.
The main driver behind these tax hikes is the Government’s declining revenue from fuel duty, as more drivers transition from petrol and diesel to electric vehicles. At present, the treasury takes 53p per litre of petrol or diesel sold, whereas the tax on domestic electricity is significantly lower.
Despite these changes, the Government insists that the adjustments are not intended to generate additional revenue. Chancellor of the Exchequer Rachel Reeves stated in October that increasing VED in line with the Retail Price Index for 2025-26 is aimed at maintaining tax receipts in real terms.

Dementia Is So Cruel: The Heartbreaking Emotional Stress on Families
Dementia is an insidious and devastating disease that not only affects the individuals who are diagnosed but also takes a heavy toll on their families. The emotional stress and challenges faced by those who care for a loved one with dementia are often profound and overwhelming. In this blog post, we will explore the heart-wrenching…
🏎️ Porsche Racing Heritage: The Heart and Soul of the 911 🏁
The heart and soul of the Porsche 911 is rooted in the racetrack, where passion for performance knows no bounds. 🌟 From the moment this iconic car hit the track, its DNA was imprinted with the spirit of competition. With each lap, the 911 forged a legacy that continues to inspire generations of enthusiasts. But…
🏎️ Porsche and Its Soul: A Legacy for All Generations 🌟
The heart-pounding roar of a Porsche engine has a way of captivating not just a single generation but the souls of many. From children to grandparents, Porsche has a special place in the hearts of all. This iconic brand has a car for everyone, whether you’re a young dreamer, a passionate driver, or a seasoned…
🏎️ Porsche 911 930: The Timeless Beauty 🌟
In the realm of automotive excellence, there’s one name that has stood the test of time—the Porsche 911 930. 🚗 Designed in the 1970s, a time when cars seemed to have lost their shape and soul, this masterpiece emerged as an icon of beauty, precision, and performance. Fast forward to 2023, and it’s remarkable how…
🌟 The Road To Success In Business: Embrace the Journey 🚀
In the world of business, success is not a destination but a journey, and the road can be long and winding. 🛤️ One thing you can be sure of is that you don’t always know how long it will take to reach your desired endpoint. But here’s the beautiful part: the journey is where the…
🌟 Dream It, Believe It, Achieve It: Your Business Dreams Can Come True 🚀
In the world of business, every success story began as a dream. 🌠 From the spark of an idea to the fruition of a working model, the journey from dream to reality is a testament to human ambition and determination. The key? Belief. When you dream it and truly believe in it, you unlock the…
🌞 A Smile Can Change Someone’s Day: The Power of Positivity 🌟
In a world filled with challenges, never underestimate the incredible impact of a simple smile. 😊 Your mood and your positivity have the remarkable ability to influence those around you. A genuine smile is like a ray of sunshine on a cloudy day; it can change someone’s entire perspective. The beauty of a smile is…
🌟 Working Harder: The Unseen Path to Business Success 🚀
In the pursuit of business success, there’s a simple yet profound truth that can’t be overlooked: it all comes down to working harder. 💪 No one can truly prepare you for the level of commitment and effort it takes to make your entrepreneurial dreams a reality. It’s a journey that often demands more than you…
🌟 Wake Up, Kiss Ass, and Repeat: The Business Success Mantra 🚀
Running a business is not just a journey; it’s a passionate commitment to your dreams and a relentless pursuit of success. It’s a mantra that goes beyond the nine-to-five, and it sounds something like this: “Wake Up, Kiss Ass, and Repeat.” Each day, as an entrepreneur, you wake up with a burning desire to conquer…
🤝 “A Handshake Meant Something” 🌟
In past generations, a handshake was more than just a greeting; it was a symbol of trust, integrity, and a promise made. It meant something profound, a contract sealed with honor and commitment. As the tides of time bring change, it’s crucial to understand and value the past as the fundamental building blocks of our…