EV Road Tax Changes 2025: What You Need to Know

Electric Vehicles Lose Tax-Free Status from April 2025

The UK government has confirmed a major shift in the way electric vehicles (EVs) are taxed. From 1 April 2025, all new and existing electric vehicles will become liable for Vehicle Excise Duty (VED) — commonly known as road tax.

This marks the end of one of the biggest incentives for going electric: zero road tax. For drivers in Barnsley and across South Yorkshire, it’s time to understand what this change means, how much it will cost, and how to make smart choices when buying an EV in 2025 and beyond.

What’s Changing?

1. New EVs First Registered on or After 1 April 2025

• Will pay the first-year VED rate for cars with CO₂ emissions of 1–50g/km — currently £10.

• From the second year onwards, they’ll move to the standard rate, currently £190/year (subject to inflation).

2. Existing EVs Registered Between 1 April 2017 and 31 March 2025

• Will start paying the standard annual VED rate of £190 from April 2025.

3. ‘Expensive Car’ Supplement Applies

• If the EV had a list price over £40,000, an extra £410/year will apply for years 2 to 6 — just like petrol and diesel cars.

Why Is This Happening?

The government argues that as EV adoption increases, the tax system needs to remain fair and sustainable. As more people go electric, fuel duty revenue drops, so introducing VED for EVs is a step toward balancing public finances.

While the loss of the zero-VED perk might feel like a blow, EVs still enjoy significant cost savings — especially when it comes to fuel and servicing. And for many drivers, the environmental benefits are just as important as the running costs.

What This Means for Drivers in Barnsley and South Yorkshire

For motorists across South Yorkshire who are thinking about switching to electric, the tax change is worth factoring into your budget — but it’s not a reason to delay your EV journey. In fact, buying before April 2025 could save you up to £1,000 in VED over five years, depending on the model.

At anycolourcar.com, we can help you lock in great deals on electric vehicles before the tax kicks in, with personalised finance plans and expert guidance from our local team in Barnsley.

Is It Still Worth Buying an EV?

Absolutely. Despite the tax change, electric cars still offer:

• Lower fuel costs (charging is much cheaper than petrol/diesel)

• Cheaper servicing and maintenance

• Zero emissions driving — ideal for future Clean Air Zones

• Company car tax benefits (BiK remains low for EVs)

Plus, with vehicles like the Skywell BE11 now available under £40k, you can still enjoy premium EV features without the high-end price tag.

Conclusion: Plan Ahead, Save Smart

The introduction of VED for EVs in 2025 is a policy shift, not a deal-breaker. By planning ahead and working with trusted local providers like anycolourcar.com, drivers in Barnsley and beyond can still enjoy all the benefits of electric motoring — with expert support and transparent pricing.