DVLA issues warning some drivers could face £600 tax bill in 2025

The DVLA has started sending letters to electric vehicle owners to warn them that they will soon need to start paying for road tax

The DVLA has issued warning letters to electric vehicle (EV) owners about a major change they'll face in 2025. While the Government has confirmed there will be no pay-per-mile tax introduced in the October Budget, electric car owners are being informed that the current exemption from vehicle tax will cease in 2025.

On Reddit's r/CarTalkUK forum, one EV owner shared the letter they say they got from the DVLA. It read: "We're writing to let you know that as the registered keeper of the above electric vehicle, from April 1, 2025, you will need to pay vehicle tax in the same way as existing drivers of petrol and diesel vehicles.

"This vehicle tax charge will apply to all new and existing electric cars, vans and motorcycles. You do not need to do anything now. When the time comes to tax your electric vehicle (on or after April 1 2025), your vehicle tax will be calculated automatically, and you'll receive a reminder."

With electric vehicles becoming more common on British roads, previous incentives offered by the Government to encourage uptake are being phased out, reports the Express. This includes the tax exemption that will soon come as a major change to the finances of EV owners.

This means EV owners must prepare to pay road tax from April 1, 2025. Or, when their current vehicle's tax policy expires, ending one of the last remaining perks for private electric car buyers.

The DVLA's recent letter had EV owners wondering about future vehicle tax rates, which will be determined by the vehicle's registration date and type (car, motorcycle or van). They said: "The rate of vehicle tax for your electric vehicle will depend on when the vehicle was first registered and what type of vehicle it is (car, motorcycle or van)."

If EVs are taxed at the same flat rate as older petrol and diesel vehicles, owners could face a £190 annual fee. Additionally, starting in 2025, high-end electric models will incur a luxury vehicle tax - currently affecting petrol and diesel cars by over £40,000 - which could push the yearly cost to £600.

Despite this, EV advocates call for the Government to scrap the luxury tax on electric models. They say that popular choices like the Tesla Model Y would be affected.

The Government's website clarified: "From April 1, 2025, drivers of electric and low emission cars, vans and motorcycles will need to pay vehicle tax in the same way as drivers of petrol and diesel vehicles. This change will apply to both new and existing vehicles.

"This new measure effectively removes band A under the existing VED system which is currently £0. Vehicles in this band will be required to move to the first band where a rate becomes payable.

The Government has a full list of vehicles that currently (as of October 11, 2024) do not need to pay vehicle tax. It can be found here.

Express.co.uk has reached out to DVLA for a response.