The DVLA is set to rollout major changes for motorists, road users and drivers as we head past Christmas and into 2025, with new VED rates coming next spring.

Two million drivers warned 'major' car tax change from DVLA is coming

by · Birmingham Live

Two million drivers have been warned a "major" car tax change from the DVLA is coming. The DVLA is set to rollout major changes for motorists, road users and drivers as we head past Christmas and into 2025, with new VED rates coming next spring.

Motorists across the UK could be impacted by massive new car tax Vehicle Excise Duty (VED) changes set to hit certain drivers next year. The DVLA strategic plan explained: “We will deliver the Vehicle Excise Duty technical changes required for electric vehicles and low emission vehicles which will take effect from 1 April 2025.”

The plan added: “During the year, we will continue to invest in our digital transformation programme, and in delivering the changes required to support the collection of Vehicle Excise Duty for electric and low-emission vehicles.”

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EV owners are likely to pay the same as petrol and diesel owners with annual fees currently sitting at £190. This is an extra £410 charge issued to motorists on vehicles valid over £40,000 between the second and sixth years registered on the road.

The Budget documents from the Labour Party government states: “To help drive the transition to electric vehicles (EVs) the government is strengthening incentives to purchase EVs by widening the differentials in Vehicle Excise Duty First Year Rates between EVs and hybrids or internal combustion engine cars.”

The DVLA said: "During the year, we will continue to invest in our digital transformation programme, and in delivering the changes required to support the collection of Vehicle Excise Duty for electric and low emission vehicles.

"We will manage our expenditure within the agreed delegated budgets from DfT, while achieving our headcount target of 5,506 FTE by March 2025 through natural turnover. We will deliver the level of efficiency savings that we committed to as part of the Spending Review, building on the significant efficiencies that we have delivered over recent years."