Car Tax Hikes Coming In April That 75% Of Brits Are Unaware Of

A major shake‑up to Vehicle Excise Duty (VED) is arriving in April — but three‑quarters of UK drivers have no idea it’s coming. With new tax bands, higher first‑year rates, and electric vehicles losing their exemption, these changes could cost motorists hundreds or even thousands more.

If you own a petrol, diesel, hybrid, or even an EV, here’s what you need to know before the new rules kick in.

What’s Changing in April?

From 1 April 2025, VED rates for new cars will rise sharply.

First‑Year VED Doubles for High‑Emission Cars

Drivers buying new petrol or diesel cars will face significantly higher first‑year tax:

• Cars emitting over 255g/km CO₂
  • Current first‑year rate: £2,745
  • New first‑year rate: £5,490

That’s a 100% increase.

EVs Lose Their VED Exemption

Electric vehicles, previously exempt, will now pay:

• £10 in the first year
• £195 annually from year two onwards

This brings EVs in line with standard petrol and diesel rates after the first year.

If you want a clearer breakdown of how car tax works and how you can save on it, this guide may help.

Why Are These Changes Happening?

The government aims to:

• Encourage drivers to switch to low‑emission vehicles
• Raise an estimated £400 million per year
• Widen the cost gap between polluting cars and EVs

Hybrid vehicles will also see higher rates, bringing them closer to traditional petrol and diesel bands.

How Will This Affect Drivers?

The impact will be felt most by:

• Drivers buying new high‑emission cars
• Hybrid buyers expecting lower tax
• EV buyers surprised by the new annual charge
• Anyone unaware of the changes (which is most people)

A recent poll found 75% of drivers don’t know these tax hikes are coming — meaning many could be hit with unexpected costs.

Industry Concerns

Manufacturers warn the changes could:

• Reduce demand for new cars
• Slow down the recovery of the automotive sector
• Make it harder for drivers to upgrade to cleaner vehicles

Industry leaders are urging the government to support both drivers and dealerships during the transition.

What Should Drivers Do Now?

With the new rules approaching, it’s worth:

• Checking your vehicle’s emissions
• Reviewing your tax band
• Considering whether switching to a low‑emission or electric model could save you money
• Staying informed to avoid surprise costs

For many drivers, acting early could save hundreds or even thousands over the lifetime of a vehicle.

Final Thoughts

The upcoming VED changes are significant — and with most drivers unaware, many could be caught out. While the goal is to encourage EV adoption, the changes highlight the need for clearer communication and better support for motorists.

Whether you’re buying new, renewing your tax, or planning ahead, staying informed is the best way to avoid unexpected bills.

If these changes have you thinking about switching to an EV — or simply selling your current car — Jamjar.com can help you get the best price quickly and easily.

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