DVLA sends new car tax warning letters to drivers with £600 charges

The DVLA has started to send letters to electric vehicle owners, warning them of an upcoming change to the way their car will be taxed

Electric vehicle drivers have been alerted by the DVLA about impending changes to their car tax. Despite Government assurances that a pay-per-mile system will not be introduced in the next Budget, it's been confirmed that electric vehicles' exemption from tax will cease come 2025.

An electric car owner, known on Reddit as Technical_Outcome_14, shared that a letter from the DVLA reached them outlining these upcoming changes.

The correspondence said: "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."

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It further detailed: "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."

In efforts to bolster electric vehicle take-up, the Government previously introduced incentives for early adopters, but with electric vehicle numbers increasing, such benefits are gradually being withdrawn, with this tax perk set to disappear, reports the Express.

From April 1, 2025, owners of electric vehicles will be required to pay road tax, falling in line with owners of petrol and diesel models, marking an end to the current exemptions they enjoy.

Details on the cost to electric vehicle (EV) owners remain uncertain, but the DVLA has indicated pricing will hinge on a couple of significant variables.

In their words: "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)."

Should the DVLA decide on a uniform rate akin to that for year-old petrol and diesel autos, EV owners could be looking at £190 annually. And high-end electric rides?

They'll get hit with luxury taxes starting 2025 tacking on an extra £410 for five years for those over £40k list price, potentially causing a massive annual cost of £600.

Electric enthusiasts are calling out to the powers-that-be to scrap the charge, as top-sellers like the Tesla Model Y fall into this expensive bracket.

The word from the Government's side is clear: "From 1 April 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."

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