The UK's journey towards achieving net-zero carbon emissions by 2050 has gained considerable momentum in recent years, particularly through the widespread adoption of electric vehicles.

As the government aims to phase out the sale of new petrol and diesel cars by 2035, EVs have become a key pillar in the country's sustainability strategy.

However, a significant change is set to take place for EV owners starting in April 2025: the introduction of road tax for electric vehicles.

This change has sparked concerns and questions from both existing and potential EV owners, so experts at Swansway Motor Group break down what this new tax means, why it's being implemented and how it might affect you.

Why Is the UK Introducing Road Tax for Electric Vehicles?

For years, the UK government has incentivised the switch to electric vehicles. Various schemes such as grants, tax breaks and exemptions from certain charges have been available to make EV ownership more attractive.

However, as the number of electric vehicles on the road grows, the government faces a pressing issue: the gradual decline in revenue from traditional fuel taxes.

Fuel taxes have long been the primary funding source for road maintenance and infrastructure projects. But because EVs don't rely on petrol or diesel, they haven't been contributing to this fund.

With more and more electric vehicles on the road, the government has determined it's time to introduce a system where EV owners will contribute their fair share to the upkeep of the country's road network - just as petrol and diesel vehicle owners have done for decades.

What Does the New Electric Vehicle Road Tax Entail?

Starting on 1st April 2025, the UK government will implement road tax for all electric vehicles.

This new tax structure will ensure that all vehicles, regardless of fuel type, contribute to road infrastructure. While current internal combustion engine (ICE) vehicles are already subject to road tax, EVs will soon be included in this requirement.

Breakdown of the New EV Road Tax The new tax structure for electric vehicles includes several key points: First-year tax rate: any new zero-emission electric vehicle registered on or after 1st April 2025, will be required to pay a nominal first-year tax of £10, provided the car emits less than 50g/km of CO2.

This is the lowest possible rate for EVs.

Standard annual tax: after the first year, the tax rate increases to £195 annually for all EVs, beginning in the second year of registration.

This rate will be the same as the standard tax rate for petrol and diesel vehicles. Existing EVs registered before 2025: electric vehicles that were registered between 1st April 2017 and 31st March 2025, will immediately be subject to the standard £195 annual tax, starting in 2025.

The expensive car supplement: vehicles that are priced over £40,000 (including electric vehicles) will be subject to an additional tax. This 'Expensive Car Supplement' means that owners of EVs with a retail price over £40,000 will pay an extra £410 in road tax.

For comparison, the tax for petrol and diesel vehicles in this price bracket will rise to £425, meaning owners of pricier EVs will pay £620 per year in total. Older EVs: electric vehicles that were registered between 1st March 2001 and 30th March 2017, will shift from the current Band A to Band B, which means they will pay a reduced road tax of £20 per year.

Vans and motorcycles

For zero-emission vans, the tax will align with that of petrol and diesel vans, amounting to £335 annually.

Similarly, zero-emission motorcycles and tricycles will face a road tax of £25, with the lowest engine size attracting this fee.

How Will This Impact Electric Vehicle Buyers?

Naturally, some prospective EV buyers are concerned that the introduction of road tax could deter them from making the switch from traditional petrol or diesel cars.

However, it's essential to view this tax in perspective. While it does add an annual cost for EV owners, it's still relatively small when compared to the expenses associated with running a petrol or diesel vehicle.

In fact, one of the biggest selling points of electric cars has always been their lower cost of ownership - thanks to savings on fuel and lower maintenance requirements.

Charging an electric car is far cheaper than filling up a petrol tank and EVs have fewer moving parts, leading to less wear and tear.

Additionally, the UK government remains committed to encouraging sustainable transportation, so EV owners will still benefit from various incentives, even after the introduction of road tax.

These incentives include the £2,500 plug-in car grant (available for certain models), potential tax breaks and reduced or free charging at home and public charging stations.

In many cases, the savings on fuel and maintenance will more than offset the additional cost of road tax, making EVs an attractive option for many buyers.

Swansway Garages is a sponsor of Crewe Nub News.

Support from local businesses such as them helps us keep our local news free and easy-to-read.

If you own a local business and would like to sponsor us, get in touch at [email protected].