UPDATE: |How to check if your car reg plate is affected by DVLA £150 tax increase as AA issues warning News

The AA reckons that the average driver could end up paying over £650 a year in fuel duty and road tax

The AA has warned that motorists could be subject to paying an extra £150 in tax now that the DVLA’s new rules have come into effect. As of April 1, 2025, changes to road tax for standard rate vehicles and electric vehicles (EVs) mean that many drivers across the UK will end up paying more to use the roads over the course of the year (via LancsLive).

In total, The AA reckons that the average driver could end up paying over £650 a year in fuel duty and road tax. Meanwhile, Government data estimates that around 58% of UK drivers are still paying annual road tax using the older CO2-based emissions rate, while the new ‘standard rate’ version starts at £195 for cars registered after 2017.

The AA reckons that most car owners with small and family cars are paying their road tax at the lower end of the road tax system, meaning they’re set to see a huge increase when they swap their car for a newer model. Head of roads policy at The AA, Jack Cousens, says: “VED changes and future increases threaten a major financial shock to the finances of millions of car owners whose vehicles are still paying VED under the 2001-2017 CO2-banded system.

“For those with ageing low-CO2 small family and city cars, the transition to the current standard VED rate could see a hike of £150 or more a year on their motoring tax. With the average car currently paying £436.84 in fuel duty a year – or £524.21 when VAT is added at the pump – a £150 increase in the VED they will pay represents a 34% hike (29% with VAT) on top of what they are paying in fuel duty.”

The new rules will also affect EV drivers, who have been exempt from road tax. New EVs registered after March 31 will have to pay road tax when the new rules take effect on April 1.

All EVs registered between April 1, 2017 and March 31, 2025, will be required to pay the new standard rate road tax of £195 per year. All EVs registered before March 31, 2017, will pay a lower annual rate of £20.

While there was a chance for EV drivers to avoid the tax increase for another year, this window has now passed. You can renew your car tax at any time, meaning if you renew for an entire year before March 31, 2025, you could have avoided the £195 price hike introduced on April 1 for another year.

You can check to see how you’re affected by the DVLA’s April 1 changes at the Webuyanycar website. Enter your number plate registration and it will let you know your CO2 emissions and how much car tax you’re eligible to pay going forward.

Full list of tax changes from April 1

New standard road tax rate

The standard road tax rate will rise from £190 to £195 annually. This will apply to all cars first registered between April 1, 2017, and March 31, 2025.

Tax increases for low-emission vehicles

First-year road tax for low-emission vehicles producing between 1 and 50g/km of CO2 will increase to £110. Until this takes effect, hybrid cars in this band – which includes most plug-in hybrids – pay no road tax in the first year, while petrol and diesel cars in the same band pay £10.

First-year road tax for new cars emitting 51-75g/km will increase to £135. The previous rate for cars in this band was £20 for hybrids and £30 for petrol and diesel cars.

New taxes for EVs

Road tax exemption for all EVs will end when the new rules take effect on April 1. New EVs registered from this date will be taxed £10 in the first year – known as the “showroom tax”.

Any EVs registered with a list price exceeding £40,000 will be subject to the “expensive car supplement” – an additional £425 per year between the second and sixth years of ownership. EVs registered between April 1, 2017, and March 31, 2025, will be required to pay the new standard rate road tax of £195 per year.

However, all EVs registered before March 31, 2017, will benefit from a lower annual rate of £20. The £10 annual discount on the standard rate road tax for alternative fuel vehicles – including hybrid, bioethanol and liquefied petroleum gas (LPG) cars – will be discontinued from April 1.

This means affected drivers will have to pay the new standard £195 annual rate. Electric vans will also be taxed at an annual rate of £355 – the same rate applied to petrol and diesel light goods vehicles.

Doubling first-year rates for higher-polluting new cars

The first-year rate for cars in all other road tax bands (producing 76g/km or more) will double. This means new cars in the highest band (those producing 255g/km or more) will be subject to a £5,490 tax in the first year.

The top rate will affect 59 new models from 24 car manufacturers, including the Bentley Continental W12, Porsche 911 Turbo and Land Rover Defender V8.

Car tax exemptions

From April 1, road tax exemption for EVs will end, with drivers required to pay the new standard annual rate of £195. However, some drivers may still be exempt from road tax:

SORN cars

Drivers who make a SORN (Statutory Off-road Notification) for their vehicle will no longer be required to pay road tax for that vehicle. They will also be eligible for a road tax refund from the DVLA if they have any full months’ car tax remaining.

Drivers with disabilities

Drivers can apply for exemption from road tax if in receipt of:

• The higher rate mobility component of Disability Living Allowance
• The higher rate mobility component of Child Disability Payment
• The enhanced rate mobility component of Personal Independence Payment (PIP)
• The enhanced rate mobility component of Adult Disability Payment (ADP)
• Armed Forces Independence Payment
• War Pensioners’ Mobility Supplement
• Drivers can also apply for a 50% vehicle tax reduction if they receive the standard rate mobility component of PIP or the enhanced rate mobility component of ADP. For more information, visit Gov.uk’s ‘Financial help if you’re disabled’ section here.