On the 30th October 2024, Rachel Reeves delivered her first budget for the new UK Labour Government. In this budget were changes to the vehicle excise duty (usually called “road tax”) to encourage the shift to electric vehicles by doubling the new rates on all but the most efficient new petrol and diesel cars in their first year. However, the detail was missing and even now at the end of the year, the DVLA still hasn’t published the new rates from April 2025.
In this video I go through the changes and how it affects owners of electric cars and vans and those looking to buy a new car in 2025. But I also cover the rates for petrol and diesel cars as that’s the real shock under the new pricing structure from April 2024.
I made one small mistake in the video. The new rate for older EVs (registered before 31st March 2017) looks like it’s going to be £20 a year and not £10. However, both figures have been used in GOV docs.
The Government’s aim is to encourage the update of EVs. I agree with that view, but not in their methods. The new rates of tax on higher polluting petrol and diesel vehicles is just ridiculous, especially when there are not yet EV alternatives available for some of these vehicles. For example, heaving towing, off-road vehicles etc.
DVLA document
This video was filmed in December 2024.
If you’re thinking about buying a new Tesla, use or enter “matt55592” as a referral code for a discount of your purchase. A new Tesla Model 3 RWD is below the threshold of the “luxury vehicle supplement” and therefore will only be £10 to tax!
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Chapters/timestamps:
00:00 UK road tax system
00:28 New road tax rates for used EVs
00:49 New road tax rates for new EVs
01:49 Expensive car tax is unfair
02:50 New road tax rates for electric vans
03:09 Tow vehicles
03:34 Current 4×4 tax rates
03:58 New rates for new ICE vehicles
04:17 How to get another year free
04:45 Please comment
#gogreenautos #gogreenautosuk #electricvehicles #electricvan
source
I need to correct an error in this video. The new road tax price for the oldest EVs (registered before 31st March 2017) will be £20 a year, not £10. I think. Even the GOV website shows both £10 and £20 in different places!
Just also to add as I missed this off the video….
If you lease your vehicle, the contract will most likely include road tax, so the funder will be paying it.
I'll selling our ev this year, I had enough. Buy diesel.
If they ask you to pay high road tax for an EV, simple DON'T pay. The "Gov" should be forced to stop such nonsense and Electric Vehicles remain tax free, or bear minimal. They get enough money and tax for other rubbish and do a crap job with it.
I can see second hand ev's absolutely plummeting. If not, in a few years the public will realise just how much employers underpay them and debt trap them into poverty if they haven't woken up to how bad it is already and the extent of the scale of millions of people if not the majority of the population can't afford a 40k car per family let alone each.
40k is still a damn expensive car to most people in areas with houses around 100k.
2 cars or a house? About as much as minimum wage each per year to buy. That's how inadequate wages are for most people struggling to afford cars multiples less. Some employers plead poverty and threaten to leave Britain rather than pay an extra 1k that should be an annual increase minimum anyway. Employers demand people have cars in garages so how can people, especially the youth, actually get jobs that pay atleast double or triple full time minimum wage just for a consumable commodity such as a car? Talk about out of touch with reality. People live on mountains in Wales and travel far to debt trap impoverishing jobs that won't pay staff to afford cars they insist people have to be able to work the unsociable hours of garages. Says alot how infuriating it is not even a mechanic keeping the nation moving can afford a car a quarter the price even with trade discount and maintaining it themselves. That's how much poverty employers cause, relationships ruined, stress caused, depression, inability to pay child maintenances, unable to afford rent let alone Pensions, save for mortgages and pick up the costs employers dump on them for tools as they don't pay tool allowances or anything they are supposed to pay in fact. It's just a car. People can't seriously be expected to buy 40k cars as if the sum is nothing. People who can afford those prices probably don't even need cars. Not everyone is a tech specialist that can afford 120k for a Tesla as the new ford Mondeo. Company's fleets of 5 Mondeo didn't cost the price of a Tesla with tax rebates you know. 10 when I started driving. When I started working I could have bought my parents house, my nans house and a new ford escort or Renault Laguna for 40k and had a holiday. A decade ago a near new Ford Focus was 10k with about as much mileage. Our #ukgovernment #LabourParty #Conservatives #UKIP #ReformParty needs to make employers pay incomes that afford people 40k cars if that's what people think is a normal price car each. Hold your horses Sheikh, this isn't Dubai, it's Britain. Mostly major drug dealers, accountants, Lords and Lawyers are the only ones that get enough funds to afford 40k cars and 150k Range Rovers/SUV's.
I'm only middle aged. I'm not my parents nor grandparents ages.
40k is still a damn expensive car to most people in areas with houses around 100k.
2 cars or a house? About as much as minimum wage each per year to buy. That's how inadequate wages are for most people struggling to afford cars multiples less. Some employers plead poverty and threaten to leave Britain rather than pay an extra 1k that should be an annual increase minimum anyway. Employers demand people have cars in garages so how can people, especially the youth, actually get jobs that pay atleast double or triple full time minimum wage just for a consumable commodity such as a car? Talk about out of touch with reality. People live on mountains in Wales and travel far to debt trap impoverishing jobs that won't pay staff to afford cars they insist people have to be able to work the unsociable hours of garages. Says alot how infuriating it is not even a mechanic keeping the nation moving can afford a car a quarter the price even with trade discount and maintaining it themselves. That's how much poverty employers cause, relationships ruined, stress caused, depression, inability to pay child maintenances, unable to afford rent let alone Pensions, save for mortgages and pick up the costs employers dump on them for tools as they don't pay tool allowances or anything they are supposed to pay in fact. It's just a car. People can't seriously be expected to buy 40k cars as if the sum is nothing. People who can afford those prices probably don't even need cars. Not everyone is a tech specialist that can afford 120k for a Tesla as the new ford Mondeo. Company's fleets of 5 Mondeo didn't cost the price of a Tesla with tax rebates you know. 10 when I started driving. When I started working I could have bought my parents house, my nans house and a new ford escort or Renault Laguna for 40k and had a holiday. A decade ago a near new Ford Focus was 10k with about as much mileage. Our #ukgovernment #LabourParty #Conservatives #UKIP #ReformParty needs to make employers pay incomes that afford people 40k cars if that's what people think is a normal price car each. Hold your horses Sheikh, this isn't Dubai, it's Britain. Mostly major drug dealers, accountants, Lords and Lawyers are the only ones that get enough funds to afford 40k cars and 150k Range Rovers/SUV's.
So a diesel car giving off emissions is £20 a year tax, but yet a small ev with 0 emissions is £195 ????? 👍
This is the issue with successive government. How much money can I squeeze from tax payers to rebalance the economy and successfully fails everytime. As a citizen your entire existence is taxed. Yet there is never enough money to pay for the basic service in a country. If I was taxed less and had more disposable income I would spend more…fact!. Taxed on every aspect of my life and I become frugal! For example: supporting a restaurant which employs 20 staff I visit every month and so do 10000 other customers. Idiotic governments raises my cost of living through tax increases. I no longer visit the restaurant as I will certainly cut back on expenditure. 10000 customers do the same and the restaurant closes. 20 employees are now on welfare and inactive. No taxes or NI contributions from them and become a burden to the welfare state. How is that sustainable economics? Every government does the very same thing in office…Insanity – the definition of madness. And the most notable point about this truth is never went to Oxford, Uxbridge or Cambridge…Common sense!
The pay-per-mile has always been included in tax … the more fuel you put in, the more tax you pay. Of course EVs have stopped that and we have folks believing they should pay no tax if they run an expensive, and very heavy EV which does consequent damage to the road! My euro6 diesel crossover can get up to 80.5mpg. When hybrids can match that, I'll believe they're worth having.
luckily I have a diesel car (2016) with Zero road tax. 👍
My Golf is £620 a year road tax which is disgraceful £40k plus? a lot of cars fall in this bracket, I could understand if it was a supercar at £150k plus, they will always keep on moving the goal posts, to milk us as much as possible
My Golf is £620 a year road tax which is disgraceful £40k plus? a lot of cars fall in this bracket, I could understand if it was a supercar at £150k plus
So if the car is 40 k + you pay £605 for each year? or £605 total for year 2 to year 6?
Good bye labour
You espouse “pay-per-mile “; you must be nuts! That will be charged at different rates within the day/night frame! And there won’t be any other tax changes! Completely mad!
you poor sheeple you still dont get it, it happened with diesels and now it is happening with evs it is a big scam to get us all in evs then hike the tax up on them and your lovely smart meters at home will know when you are charging your car and an extra tariff on the electric will be introduced evs are not the future i will remain with internal combustion until i die and at 60 i dont expect to be around when it finally becomes law to have an ev until then evs belong in the fair as bumper cars and golf buggies im off to fill my car with lovely reliable petrol
The then-chancellor Jeremy Hunt said in November 2022 that the introduction of VED for electric cars from April 2025 would apparently ‘make the motoring tax system fairer’, but in what way? In my honest opinion, the only thing it’s going to do is encourage drivers to stick with their perfectly good petrol/diesel cars…
I achieved success by investing in electric vehicle charging stations, a hidden opportunity that many people don't realize yet. Every family has that one person destined to break the financial barriers—my hope is that you become that person.
No pay by mile we already do that vat paid on petroleum the further you drive the more you pay how dare you !!!!
All wrong
You buy a car youre taxed, you fuel it up youre taxed and if you wanna drive it youre taxed
Seems like an April fools joke to me
My Kangoo z.e 2013 falls in just over £270.00 it's a joke.
My sons April renewal for his 2016 kia picanto is still free , makes no sense
Starting April 2025, EVs like the Toyota bZ4X will no longer be exempt from road tax, but they still offer good value with lower running costs and zero emissions. ICE vehicle owners will see rising costs, making EVs a smart, environmentally friendly choice for the future.
Poxy Labour government, take take take wtf, I really thought I was doing the right thing going green …. never again
No one stands up against them, so they'll keep getting away with it.
If you need permission to drive do you even own the the car technically
Frankly, it’s outrageous that the government is pushing for a complete switch to electric vehicles by 2035 when the infrastructure is nowhere near ready. The number of charging stations is far too low, especially in residential areas where people don't even have driveways or garages to charge their vehicles. Not to mention, EVs are still way too expensive for the average person. The high upfront cost, combined with road tax, VAT, and rising electricity bills, makes it nearly impossible for many to even consider owning an EV.
What’s even more frustrating is the lack of real support or exemptions to make EV ownership practical. The government needs to step up and address these issues—more charging points, affordable electricity, and better subsidies to make EVs accessible for everyone.
And let’s not forget the unfairness of it all. EV owners are already paying a premium for their cars, yet they are still being slapped with higher road taxes. Why should people who own zero-emission vehicles be penalized in this way? This policy feels completely unrealistic and unfair, and the government needs to reconsider and fix these glaring issues before pushing such a drastic change on the public.
It’s ridiculous for the government to push everyone toward buying EVs by 2035 when the infrastructure and affordability just aren’t there. There aren’t enough EV chargers on the roads or in residential areas, especially for people without driveways or garages. EVs are still far too expensive for the average person, and road tax, VAT, and high electricity bills make the whole idea unaffordable. On top of that, there’s no real support or exemptions to make EV ownership easier or more practical. The government needs to focus on fixing these issues—like more chargers, subsidies, and affordable electricity—before forcing such a drastic change on people. This policy feels unrealistic and unfair for many!
My old BSA bantam had a kick-start.
The kicker?
Yes I'll tax my id4 in March 2025 although not due October 2025, around March 2026 I'll had car back to vw 6 months before end of pcp deal and just use my diesel passat. Another government policy that has not been thought through! Look what Norway does compared to UK !
We have RUC in New Zealand ( road user charges) Paid per kilometre. All private passenger vehicles under 3.5T are 7.6 cents per Klm, this just recently changed and now includes hybrid, petrol and EVs. RUC was always exclusively just for diesel only, but has now changed. It is a fair system (sort of). We buy units of 1000klm at a time and you buy however many you want, when you run out you buy more.
So my friend with petrol toyota corolla pay £35, and I with Kia EV pay £195. Plus 20% tax rate on public chargers. Great…
Good video I think I will keep my 2009 vw Passat tdi tax is going to increase to £270 if I’m correct with 146co2 emissions also just had some expensive repairs for clutch and injectors I won’t be getting a ev .
that Labour cunts.got a cheek
Horrible wowen that
Here she goes again ripping people off 🙄
What if you in the 1st year of a salary sacrifice EV lease? Do you have to pay the tax?
You must be the first person who thinks pay per mile is a good idea, £1 per mile, even if you do have a little run around and do 500 miles a year you're going to be paying way more than double so no sure where you think its a good idea.
This is labour we're talking about and with a charge of using the new toll tunnel opening next month in london and at the same time banging the same toll charge on Blackwall tunnel seeing both costing £4 each way each time during peak hours of 6am till 10pm, even if they don't launch pay per mile at £1 it will be a max of 2 to 3 years before it does.
You will pay the same as motor vehicles, eventually.
This woman is some sort of doomsday machine.
I certainly will not..lol I don't buy crap
I've said time and time again the new and new used car market in the uk is finished mark my words..