2025 Car Tax Changes: What Drivers in Barnsley Should Know

As we move through 2025, one of the most important updates for UK drivers—especially in Barnsley and across South Yorkshire—is the change in how Vehicle Excise Duty (VED), commonly known as car tax, is applied. These updates particularly affect electric vehicle (EV) owners and those driving older petrol and diesel cars.

If you're buying, selling or simply budgeting for your car this year, this guide from anycolourcar.com will help you understand what’s changing, how much you might need to pay, and what it means for your next vehicle choice.

⚡ What’s Changing in 2025?

For years, electric vehicles were exempt from paying VED (road tax), thanks to UK government incentives to encourage greener transport. But that’s changing.

As of 1 April 2025, the government is introducing new VED rules that affect:

• Electric vehicles (EVs)

• Hybrids and plug-in hybrids (PHEVs)

• Cars registered between 1 March 2001 and 31 March 2017

• Luxury vehicles over £40,000

🔌 Electric Vehicles: No Longer Tax-Free

📅 From 1 April 2025:

• New and existing EVs will now be subject to VED (road tax).

• EVs registered after 1 April 2025 will pay the standard rate (currently £190/year).

• EVs registered before April 2025 will enter a gradual tax system, beginning with a reduced rate in the first year and rising in line with petrol/diesel cars by year two.

💡 Why the Change?

The UK Treasury says the shift ensures fairness, as EV uptake rises and fuel duty revenue declines. While it may be frustrating, EVs remain cheaper to run than petrol or diesel cars, and local incentives can still help reduce costs.

🚙 Hybrids & Plug-in Hybrids

Previously, many PHEVs and some hybrids benefited from reduced VED rates. These are now being phased out.

From April 2025:

• Most hybrids will pay the same standard rate as conventional fuel cars.

• This means up to £190/year, depending on emissions and registration date.

🏁 Cars Registered Between 2001–2017

Older petrol and diesel vehicles are taxed based on their CO₂ emissions. But under the 2025 plans:

• Some older models may see higher rates applied based on emissions brackets.

• If you're driving a car with emissions above 151 g/km, expect increases.

• Low-emission models (under 120 g/km) will still benefit from reduced tax bands.

💷 The Luxury Car Surcharge (Still Applies)

The additional tax for cars over £40,000 still applies to:

• New petrol, diesel, hybrid and EVs over this value

• An additional £390 per year, for five years, on top of the standard rate

Even zero-emission cars over £40,000 are now subject to the luxury surcharge from 2025 onwards.

📍 What This Means for Drivers in Barnsley & South Yorkshire

✅ If you’re an EV owner in Barnsley:

• Budget for VED starting April 2025

• Benefit from lower running costs, despite new tax

• Consider applying for local EV grants or charging support

🛞 If you’re driving an older car:

• Be aware of increasing costs tied to CO₂

• Plan ahead for potentially higher annual tax

• A newer, more efficient used car may save money in the long run

💡 Tip from anycolourcar.com:

We have a range of VED-efficient cars and affordable low-emission vehicles available now – perfect for Barnsley drivers preparing for these changes.

📈 Example Comparison: 2025 VED Rates

📣 Final Thoughts: Stay Ahead, Save More

VED changes in 2025 are reshaping how we think about the cost of driving in the UK. If you're considering an EV, hybrid, or simply want to reduce your yearly tax, now's the time to get smart with your car choice.

At anycolourcar.com, we’re proud to help drivers across Barnsley and South Yorkshire find the right car for their budget, lifestyle and long-term costs.

✅ What To Do Next

• 💬 Need help choosing a tax-friendly car? Contact our team today.

• 🚗 Browse low-emission cars available now at anycolourcar.com

• 🧾 Get a free VED estimate on your next car with us

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