EV Cars - Road Tax April 2025

Giov

How does the above effect Company EV Cars that are obviously registered to the leasing company and not the driver, still have to pay ??

RogerPensionGuy

I guess contact the leasing company, but it sure looks like the EV VED and Luxury Car Tax of 2K will make EVs much less attractive for many.

Just when EVs needed more government/tax payers support they are joining a clunky car tax environment.

On the plus side, looks like 2nd hand EV prices will slip faster from April this year, so will probably make the initial cost of buying 2nd hand EVs more affordable. 

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https://www.nationwidevehiclecontracts.co.uk/guides/ask-nvc/taxing-a-leased-vehicle

Mildly_Miffed

Paying the same tax as every other car is unlikely to make a dent in the 20% market share that BEVs had last year.

The incentive was needed to help gain substantial market share. That's now been achieved, and BEVs are perfectly viable mainstream choices.

Herzlos

Normally, the lease includes the VED, so I assume your payment would remain the same and you don't need to worry about it.

What does your leasing company say?

mikewill34

If all vehicles pay per mile then it's fair to all

mikewill34

@born_again - Quote from https://www.gov.uk/tax-on-shopping/fuel-duty

born_again

https://forums.moneysavingexpert.com/discussion/comment/81918409#Comment_81918409

How is it going to be worked? The most important bit 🤷‍♀️

Given the green policy, then increasing fuel duty back to where it should be (given last rise was 2011) would be the biggest incentive to move to greener transport.

Looked back on my last few tanks of petrol 2 years ago & it was £1.40 a ltr. More than it is now..

I remember PBM was promoted back in the 70's & it was thrown out then, due to costs.

mikewill34

@born_again

"Mileage‑based taxation is already proven. GPS and telematics technology can measure distance accurately and securely, and countries such as New Zealand as well as several US states have successfully implemented similar schemes. The UK can adopt these models with minimal disruption."

The UK govt currently takes 52.95 pence per litre with today's average of £1.38 per litre that is a TAX of approx 38%

If a car does 30mpg that works out at approx 11.51p per mile TAX (according to google AI, but the calculations do look reasonable)

mikewill34

"I remember PBM was promoted back in the 70's & it was thrown out then, due to costs."

That while true, is not the reality of modern day living …

I think the cost of a GPS system such as used in New Zealand and the US will actually be cheaper than the proposed burden which is intended to be put on MOT stations.

I also believe that a GPS system will be safer, more secure and less able to be cheated.

born_again

So while we have in our car a app that shows trips etc. It is not 100% accurate & often misses trips.

So this GPS requires people to spend money on a black box then? Who's going to fit it?

Get my tin foil out to block GPS then 🤣

Why should anyone look to save dead tech money. Refer back to previous post, as the best way to change transport.

Worked for cutting down the number of smokers.

facade

https://forums.moneysavingexpert.com/discussion/comment/81918450#Comment_81918450

I had the TV on this morning, while they were spouting nonsense about "fairness" and that Rachel should put off the coming fuel tax hike (5p, which is actually 6p including VAT), because she is going to rake in a fortune from the increased VAT generated by the skyrocketing fuel prices due to "The war that is currently in the news"

It occurred to me that a much "better" "fairer" system would be to scrap VAT on fuel, and simply increase fuel duty to compensate. Then every year she (if she still has the job) could increase fuel duty by inflation.

Then any increase in fuel cost away from Budget time would be entirely down to the nasty moneygrabbing producers, no VAT element.