Conflicting Info on UK Tax Rate for EVs ?

[CarbonEV]

I saw a few months ago that EV’s will be getting taxed, and at the time, it was supposed to be a flat rate or £180-£190 for the year,

Now I’m reading it’ll be the lowest rate, £10 ?

Which one is accurate?

I know some petrol cars only pay £10!

 

[mGizmo]

AIUI, if you buy a new EV from April onwards, you pay £10 for first year.

Thereafter, you pay the "standard" rate.

Basically, exactly the same as ICE vehicles have been doing for years now - one price in year 1, then the standard rate.

 

[WonkoTheSaneUK]

The government is removing "Band A" (the £0 rate EV owners currently pay) on April 1st.

Further, any 2017 or newer EV already on the road will have to pay the new "standard" rate of £195 when taxed after April 1st 2025. Older EVs will now pay £20/year. This is the first time such a tax has been backdated.

Owners should've recently had a letter from DVLA detailing this.

Source:- Vehicle tax for electric, zero or low emission vehicles

 

[mg4]

Could you please add the country in the title of your post? Makes it easier to understand your context on a world wide website. And give you info that is useful.

Moderator: Added "UK" to the title.

 

[ReintjeWA]

Could you please add the country in the title of your post? Makes it easier to understand your context on a world wide website. And give you info that is usefull.

To be fair the website is UK based, but I don’t disagree mentioning a country makes threads easier to understand or see if something might apply to you

 

[mg4]

Thanks.

This is the only forum i found useful to join, but i am from the Netherlands. It does not seem too UK centric to be honest, but will keep that in mind.

 

[ReintjeWA]

Thanks.

This is the only forum i found useful to join, but i am from the Netherlands. It does not seem too UK centric to be honest, but will keep that in mind.

I grew up in The Netherlands but moved to Australia (almost) 8 years ago. I also found this forum the most useful to join, but yeah assume it’s about the UK when not specified.

What’s the deal with ev tax now in the Netherlands? I heard you also have to start paying wegenbelasting (road tax) now?

Here in Western Australia they’ll start charging EV drivers 2,5 cents per km from 2027 onwards to off set the loss in petrol excise. Although looking up some facts it appears the High Court has ruled it unconstitutional in Victoria so we’ll see what happens I guess.

I think that’s a crooked way of fixing the problem anyway, they should charge everybody for road tax (which is fair enough we all use the road) and then make extra money on polluting fuels. But of course that would be politically unfavourable for our politicians so…

 

[mg4]

Well in the Netherlands we got 100% discount on road tax as a stimulus to use EVs. This year it goes down to 75%, planning to get it down to 25% discount next year and 0% discount from 2030.

But, there are soo many things to consider loke subsidies, road tax, other taxes when using and purchasing an EV and the constant 190 degree policy shifts, which is why i hoped this thread is for NL, so i learn something applicable.

 

[CarbonEV]

The government is removing "Band A" (the £0 rate EV owners currently pay) on April 1st.

Further, any 2017 or newer EV already on the road will have to pay the new "standard" rate of £195 when taxed after April 1st 2025. Older EVs will now pay £20/year. This is the first time such a tax has been backdated.

Owners should've recently had a letter from DVLA detailing this.

Source:- Vehicle tax for electric, zero or low emission vehicles

Thanks,

This is what is confusing, some ICE cars are on £10-£30 a year tax?

So they’ll be lower than the EV? Or will the minimum now be same as EV rate?

 

[WonkoTheSaneUK]

Thanks,

This is what is confusing, some ICE cars are on £10-£30 a year tax?

So they’ll be lower than the EV? Or will the minimum now be same as EV rate?

Lower for existing ICE cars, same for new ones.
See here:-
2025 car tax VED rates: What you need to know about First Year Rates and more essential information
Tax rates on ICE are not being backdated.

 

[GaryMG4]

Thanks,

This is what is confusing, some ICE cars are on £10-£30 a year tax?

So they’ll be lower than the EV? Or will the minimum now be same as EV rate?

I planned to add an electric van to replace a really old Honda Jazz that I use as a small van but the upcoming changes mean Ill look for a newer Jazz that sits in the £35 bracket instead as the van VED will cost me far more than I'd save going electric.

 

[Everest]

Surely vehicle depreciation of one vehicle vs. another will be more significant than £35 vs. £190 VED, per annum

 

[GaryMG4]

Surely vehicle depreciation of one vehicle vs. another will be more significant than £35 vs. £190 VED, per annum

True but I'm looking at older vehicles where so long as it works 1 car is still worth 1 car 5 years later. My 'van' only does 2-3k miles per year as I use it to fetch horse feed/bedding/hay, go fishing or R/C planes flying. Even if I just scrap the current Jazz its depreciation is less than £400 a year. I originally was looking at ENV200 around 2016 thinking it would be exempt like the EV cars but it will be £345.

 

[Kevin Smith]

Thanks,

This is what is confusing, some ICE cars are on £10-£30 a year tax?

So they’ll be lower than the EV? Or will the minimum now be same as EV rate?

My dirty diesel estate will see its UK road tax rise from £0 which I have paid assiduously every year since it was new in 2014 to £20 which is a rise of more than six gazillion percent. In fairness to my green credentials, I bought it as the Guinness record breaking most fuel efficient ICE car at the time and it's done over 130k miles. By keeping it I am ensuring nobody drives it very far or in much proximity to people as I live in the least populous division of Northumberland and we prefer to make almost all our journeys in the MG4EV. We hope to sneak our annual renewal in in the last month of £0 for each car so it will be 2026 before we are hit

 

[deke]

The government is removing "Band A" (the £0 rate EV owners currently pay) on April 1st.

Further, any 2017 or newer EV already on the road will have to pay the new "standard" rate of £195 when taxed after April 1st 2025. Older EVs will now pay £20/year. This is the first time such a tax has been backdated.

Owners should've recently had a letter from DVLA detailing this.

Source:- Vehicle tax for electric, zero or low emission vehicles

We have two EVs. Both 21 plate. No letters yet.

 

[siteguru]

My dirty diesel estate will see its UK road tax rise from £0 which I have paid assiduously every year since it was new in 2014 to £20 which is a rise of more than six gazillion percent. In fairness to my green credentials, I bought it as the Guinness record breaking most fuel efficient ICE car at the time and it's done over 130k miles. By keeping it I am ensuring nobody drives it very far or in much proximity to people as I live in the least populous division of Northumberland and we prefer to make almost all our journeys in the MG4EV. We hope to sneak our annual renewal in in the last month of £0 for each car so it will be 2026 before we are hit

My cousin lives in Widdrington, so I'll be passing near your way next month.

 

[Richard P]

I'm looking to SORN my MG5 in March then apply for 12 months tax straight away. Hoping to get another "free" year out of them ......

 

[mystreet]

I'm looking to SORN my MG5 in March then apply for 12 months tax straight away. Hoping to get another "free" year out of them ......

Do not SORN it, just renew. Say yes to I know that it is already taxed.