3 days Ago By Luke Chillingsworth
Certain drivers will pay just £20 to use the roads from April despite one of the biggest car tax overhauls in recent years. A massive Vehicle Excise Duty (VED) update set to be introduced from April 1, 2025 with petrol, diesel and electric car owners all affected. Petrol and diesel owners will feel the heaviest sting with standard fees up and first-year rates to double with some facing bills of up to £5,490 per annum.
Electric cars will also be affected with zero-emission models paying VED rates for the first time ever after years of exemptions. Owners of models registered after 2017 will be moved to the standard VED fee which sits at £195 from April. However, not all drivers face hefty fees with those holding the keys to electric models built before 2017 likely to cash in.
Analysis from WeBuyAnyCar found this would be the "cheapest annual road tax" in the UK with fees at just £20 per year. Richard Evans, WeBuyAnyCar's head of technical services, suggested looking at older electric models could become an "attractive option" for those looking to make crucial savings. Richard said: "Once the changes take effect, owners of EVs first registered before April 2017 will have the cheapest annual road tax rate of all at just £20.
"This makes older EVs an attractive option for budget used car buyers looking to save on running costs." The £20 annual charge is almost ten times lower than the standard VED fee set to be issued to all-electric cars registered after 2017. Brand new electric car owners are also set to benefit from a similar incentive with first-year fees standing at just £10.
Motorists unsure of the date their car was registered can usually find this information in their V5C logbook. Drivers must legally renew their VED car tax agreement to use the roads with hefty punishments likely for evaders. Those caught not paying for car tax could be hit with fines and could even have their vehicle's clamped or seized by enforcement teams.
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