The DVLA has given a reminder for British drivers
DVLA clarify the way to pay car tax by Direct Debit
Motorists switching to electrical vehicles are being handed a combined bag of tax modifications, with a key penalty scrapped for a lot of patrons however a brand new annual cost now firmly in place.
The Driver and Car Licensing Company (DVLA) says electrical vehicles priced at £50,000 or much less are not topic to the so-called ‘costly automotive complement’ – offered they have been first registered from April 1, 2025. The transfer removes a pricey further cost that beforehand hit higher-value autos, providing some reduction to drivers seeking to go electrical.
Nonetheless, the broader image is much less beneficiant. From April 1, 2025, electrical, zero and low-emission autos have been introduced into the car tax system for the primary time – ending years of zero-rated motoring for a lot of.
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The DVLA has given a reminder for British drivers (Picture: Getty)
What drivers now pay
Below the most recent charges for 2026/27:
- New electrical vehicles registered on or after April 1, 2025, pay £10 within the first 12 months, rising to £200 yearly thereafter
- Electrical vehicles registered between April 2017 and March 2025 now pay £200 a 12 months
- Older electrical fashions registered between March 2001 and March 2017 pay £20 yearly
On the identical time, hybrid drivers have misplaced a long-standing perk, with the £10 annual low cost for alternatively fuelled autos scrapped.
Beforehand, drivers of higher-value autos confronted an extra cost on prime of normal car tax if their automotive price greater than £40,000.
Now, for electrical autos registered from April 2025, that threshold has successfully been lifted to £50,000 – that means many mid-range EVs escape the surcharge altogether. However these shopping for pricier fashions nonetheless face a sting.
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Electrical vehicles priced £50,000 or below are not topic to the costly automotive complement in the event that they have been first registered from 1 April 2025.
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— Driver and Car Licensing Company (@DVLAgovuk) April 29, 2026
Electrical vehicles with a listing value above £50,000 should pay each the usual price and the extra complement for 5 years, ranging from the second 12 months of tax.
Vans and bikes additionally hit
The modifications don’t simply have an effect on vehicles.
- Most electrical vans have moved to straightforward gentle items car tax charges
- Electrical bikes are actually taxed in keeping with the smallest engine dimension band
Finish of the tax-free period
The overhaul marks a significant shift in authorities coverage, as electrical car house owners are introduced into line with petrol and diesel drivers.
Whereas the elimination of the costly automotive complement for sub-£50,000 EVs affords some respite, the introduction of annual prices means many drivers will now face payments the place beforehand there have been none.
For motorists weighing up the swap, the tax benefit of going electrical has narrowed sharply – whilst upfront incentives proceed to fade.
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