DVLA sends new car tax warning letters to certain drivers

Electric vehicle owners say they have been sent letters from the DVLA

Electric vehicle owners have been warned of new charges after receiving letters from the DVLA. Motorists have been told that there will be a change to the way their car will be taxed.

While the Government has insisted it will not be introducing a pay-per-mile tax system in the October Budget, the exemption on electric vehicles is set to end in 2025. Posting on Reddit, one electric car owner said they had received an important letter from the DVLA.

The letter 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.

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"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."

The Government offered a number of incentives to encourage buyers to make the switch to electric models when they first entered the market, Express reports. But these have slowly been phased out as the number of EVs on UK roads has increased.

Tax exemption was one of the final bonuses private EV buyers could take advantage of. Electric car owners will need to pay for their road tax for the first time from April 1, 2025 - or whenever the current tax policy on their vehicle expires.

It is not yet known how much the DVLA will charge electric vehicle owners. In the letter posted on Reddit, it seems the DVLA will base this on two factors.

The letter read: "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 the DVLA uses the same flat rate as petrol and diesel vehicles that are one or more years old, electric vehicle owners could pay £190 per year for tax. But owners of some of the higher end electric models will be subject to luxury vehicle tax from 2025.

Currently applied to petrol and diesel models, this £410 tax applies to any vehicle with a retail price of over £40,000 for the first five years of its life. It means owners of a large electric vehicle may soon need to pay £600 per year.

Some supporters of electric vehicle have urged the Government to drop this charge, with about two thirds of models sold in the UK subejct to the fee - including the Tesla Model Y.

The Government website said: "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." Express.co.uk has approached DVLA for comment.