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Vehicle Road Tax Changes for EVs

Updated: Feb 20


Blue BYD Atto 3 driving down the road

How will the vehicle road tax changes for EVs affect you?


From 1st April 2025, Vehicle Excise Duty (VED) and the Expensive Car Supplement (ECS) will apply to new battery electric vehicles with a vehicle value over £40,000. 


New zero tailpipe emission cars registered on or after 1st April 2025 will face increased VED to the lowest-first rate of £10, however after this first year they will be subject to the standard VED rate of £195 a year. 


EVs with a list price exceeding £40,000 will now be expected to pay an additional Expensive Car Supplement at £410 per year for five years after the second year. 


It's important to note the term 'list price' when it comes to the ECS. This means the price the car was originally priced at, disregarding any dealership discounts or offers. You can try and avoid the ECS by selecting a car with fewer add ons to lower the value.


Registering a new car before 31st March 2025 can help you avoid extra costs this year.


Contact us now to enquire about our extensive access to built stock vehicles, ready for registration!





 
 
 

2 Comments


Unknown member
May 29

The recent changes to vehicle road tax for EVs definitely impact how small businesses manage their expenses, especially those using electric vehicles in their fleets. Keeping track of these evolving costs alongside other financial obligations is challenging, which is why reliable accounting services for small business become essential. Proper financial management helps ensure compliance with tax regulations while maximising potential savings. I find that expert advice, like what Octa Accountants offers, makes navigating such updates easier and allows business owners to focus on growth without worrying about complex tax details. It’s a smart way to stay ahead in today’s fast-changing environment.

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Unknown member
May 26

The changes in road tax for EVs definitely raise important questions for long-term business planning, especially for companies looking to expand or restructure in a sustainable way. One of the reasons I’ve been exploring options like setting up a swiss gmbh is the balance it offers between legal reliability and financial efficiency—both of which are key when managing fleets or international assets. Switzerland’s clear tax structure and stable environment could be a strategic advantage, especially as the UK shifts policies around EV incentives. It’s worth looking deeper into incorporation benefits for long-term vehicle management and operational flexibility.

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