DVLA warning as drivers could save £590 by doing one simple check

The DVLA has urged road users to take action with many motorists "not prepared" for major Vehicle Excise Duty (VED) updates that are set to be introduced in a matter of months

The DVLA has issued a warning to drivers to perform a simple check as many are "not prepared" for the significant Vehicle Excise Duty (VED) changes set to take place in just a few months. From next Spring, electric car owners will be required to pay VED for the first time, with the Department for Transport (DfT) confirming the annual car tax charge, currently at £190, will apply to battery electric or plug-in vehicles from April 2025.

This move aims to align EV tax charges with those for petrol and diesel vehicles, potentially resulting in higher costs for many. Owners of EVs valued over £40,000 will face an additional 'Expensive Car Supplement' fee of £400, bringing their total tax bill to £590.

However, Andy Wood from Tax Natives advises motorists to check their tax status now, as some will be exempt without realising it. He said: "Despite these new regulations, it's important to note that some vehicles will remain exempt from paying VED."

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The V355/1 DVLA document lists several categories of vehicles that are still eligible for exemption, including those used by disabled individuals, historic vehicles over 40 years old, NHS, police, and fire service vehicles, and certain 'limited use' vehicles in agriculture and forestry.

Wood emphasised: "Ensuring these vehicles are correctly classified in the DVLA system will be crucial to avoid unnecessary payments after April 2025.", reports the Express.

Motorists have been warned that a simple mistake in classifying their vehicle could result in them paying more than necessary to use the roads. Experts say exemptions could mean some drivers don't need to pay anything, potentially saving around £600.

However, Vehicle Excise Duty (VED) rates are "subject to change meaning the current £190 charge is likely to increase next year.The expert added that ", meaning the current £190 charge is likely to rise next year. The expert further advised: "the Driver and Vehicle Licensing Agency (DVLA) is advising all motorists, especially those with exempt vehicles, to review their tax class".

He added: "Misclassifying an exempt vehicle could result in unexpected tax liabilities once the new regulations take effect. Even vehicles that are currently exempt will still require owners to make sure they fall under the correct category."

"It's particularly vital for owners of 'limited use' vehicles - those used in agriculture, horticulture, or forestry with restricted road travel distances - to ensure they meet the criteria outlined in the V355/1 DVLA document."

"Failing to adhere to these requirements could lead to losing their tax-exempt status."