Latest news with #ExpensiveCarSupplement
The Independent
3 days ago
- Automotive
- The Independent
UK electric car sales jumped by over 25 per cent in May
Latest car registration figures from SMMT (Society of Motor Manufacturers and Traders) show the popularity of electric cars is rising fast but is still falling short of government targets. Nearly 33,000 new EVs hit the roads in May, up 25.8 per cent on 2024 figures. That means electric cars account for 20.9 per cent of all new car sales so far in 2025, some way off the government's ZEV Mandate target of 28 per cent. Car makers that fail to hit the 28 per cent figure face fines or will have to find ways to use credits that can include buying them from other car makers. Plug-in hybrid cars are also growing in popularity with registrations up 50.8 per cent on last May with a total of 17,898 PHEVs sold. And although petrol models still account for the vast majority of new car sales, taking 49 per cent of all car sales so far in 2025, the figure for May shows a drop of 12.5 per cent year-on-year. Overall, the car market returned to growth in May, up by 1.6 per cent and the best May for car sales since 2021. However, SMMT says that the fleet and business sector was responsible for the bulk of sales with sales to private buyers down for the second consecutive month. Although EV sales are buoyant, SMMT says that much of that is down to discounting with SMMT CEO Mike Hawes calling for government incentives to boost demand in the upcoming spending review. 'A return to growth for new car registrations in May is welcome but manufacturer discounting on new products continues to underpin the market, notably for electric vehicles. This cannot be sustained indefinitely as it undermines the ability of companies to invest in new product development – investments which are integral to the decarbonisation of all road transport. 'Next week's spending review is the opportunity for government to double down on its commitments to net zero by driving demand through fiscal measures that boost the market and shore up our competitiveness.' SMMT is calling on the government to halve VAT on new electric vehicle purchases saying it could lead to an additional 267,000 new EVs being used instead of fossil fuel vehicles over the next three years, potentially reducing CO2 emissions by six million tonnes annually. SMMT is also saying that EVs should be removed from the Vehicle Excise Duty (VED) Expensive Car Supplement, while VAT for public and home charging should be equalised at 5 per cent to encourage more consumers to consider switching to electric vehicles. Commenting on the latest registration figures, Fiona Howarth, founder of Octopus Electric Vehicles said 'we've seen yet another strong month for EVs – proving that people want to drive electric. There has been a clear shift in the market, with car manufacturers new and old bringing out new, cheaper models every month, improving driver choice and helping to make the switch to cleaner, low-cost driving.'
Daily Mirror
24-05-2025
- Automotive
- Daily Mirror
DVLA changes for millions leave drivers confused
A survey found that of the 62% of drivers who said they did not fully understand the changes, nearly two thirds (64%) are unsure whether their own tax has actually gone up According to new research from online car marketplace Carwow, changes to Vehicle Excise Duty (VED) set to take effect from April 1, 2025 have left millions of UK drivers feeling uncertain and ill-informed. Despite the extensive reforms - which will impact all UK motorists, including those who own petrol, diesel, hybrid, and electric vehicles - nearly six in ten (62%) respondents confessed they did not fully comprehend the changes, while almost two-thirds (64%) are unsure whether their own car tax has actually risen. The revised VED system has introduced a flat £195 annual rate for most vehicles and abolished the longstanding exemption for electric vehicles (EVs). Many newly registered EVs are now also subject to the Expensive Car Supplement, which applies to vehicles priced over £40,000 - a threshold that affects approximately 70% of new EVs. However, more than half (53%) of UK motorists admit they still don't know how much the changes will cost them in monetary terms, highlighting a worrying lack of clarity around one of the most fundamental costs of car ownership, according to Carwow. Carwow's study also discovered that more than half (52%) of UK motorists believe the government should be doing more to support consumers' transition towards EVs – such as offering incentives and tax reliefs where possible, reports Lancs Live. Despite this, the majority of respondents (58%) still believe the changes to VED, which now involve taxing EV owners, would not deter them from going electric in the future. The head of editorial at Carwow, Iain Reid, outlined upcoming adjustments to car tax rates set to take effect in the coming year, noting: "Road tax might not be the most exciting part of owning a car, but it's one of the most important - especially when changes impact every driver in the UK. Our research shows just how much confusion still exists post-April and highlights the urgent need for clearer communication from the government." He continued to explain the implications of the new Vehicle Excise Duty (VED): "From April 1, 2025, the VED system changed significantly. Fully electric vehicles are no longer exempt - with new EVs paying a first-year rate of just £10, followed by a flat standard rate of £195. EVs registered between April 2017 and March 2025 now also pay the full standard rate per year." Reid also highlighted additional costs for owners of pricier EVs: "On top of this, the Expensive Car Supplement now applies to EVs for the first time - so if your car costs over £40,000, you're paying an additional £425 per year for five years, meaning an annual road tax bill of £620 from your second year of ownership. Most hybrids have also lost their previous VED discount, and petrol and diesel VED rates have increased in line with inflation." And finally, he summed up the complexity added by these changes: "While the flat £195 rate is simple on paper, the removal of exemptions, the new cost layers, and inflation-linked increases have clearly made things harder to track. People are unsure what they owe - especially when taxing a car for the first time under the new rules. "On a positive note, the public's support for EVs is holding firm. On Carwow, in April we saw EV enquiries up 75% year-on-year. This suggests the public's interest for greener options is still there, but more must be done to help drivers feel confident, informed, and ready to make the switch. ". Amid growing environmental concerns, it's heartening to see electric vehicle (EV) enthusiasm remains unshaken, with Carwow witnessing a staggering 75% boost in EV enquiries compared to last year. But despite this green surge, there's a strong call for action to ensure that drivers are equipped with the confidence and knowledge required for a seamless transition to cleaner travel. To bolster a smoother shift for motorists into the EV era, Carwow has set forth its 'Future of Motoring Manifesto', an ambitious 10-point blueprint tailored to accelerate the uptake of EVs and strengthen motorists' confidence on the roads.
The Independent
10-04-2025
- Automotive
- The Independent
Renault discounts its EV range to avoid tax hikes
Renault has reacted to recent changes to Vehicle Excise Duty (road tax) with price drops and more kit across its Scenic and Megane range. With the government's Expensive Car Supplement hitting cars priced above £40,000, the Renault Scenic Techno Long Range model that was priced at £40,995 now costs £37,195, while the new Techno Esprit Alpine Long Range model with sportier styling also comes in under £40,000 at £39,930, although anything other than standard paint is likely to push that car back into the Expensive Car Supplement bracket. The Scenic appears now only to be available with the longer-range battery with an impressive maximum claimed range of up to 379 miles. The previous Comfort Range model using the same battery as the Megane has been dropped. The smaller Megane model now starts at £32,495 – a drop of £1,500, while the range-topping car, now in Iconic Esprit Alpine trim, costs £1,000 less at £36,995. Both the Megane and the Scenic now come in a simplified range – although the names couldn't be much longer. They both start in simple but well-equipped Techno trim, followed by new sportier Techno Esprit Alpine models and then Iconic Esprit Alpine cars at the top of both ranges. In addition to the new line-up, there are a host of other upgrades across both models that include full one-pedal driving that enables the cars to come to a complete stop smoothly when the driver lifts off the accelerator. Renault says that it delivers a smoother overall driving experience and maximises energy being recuperated through braking, while also reducing brake pad wear. Both the Megane and the Scenic will also come with a vehicle-to-load (V2L) adaptor that lets you plug anything with a three-pin plug into the car, while Renault's Plug & Charge tech has also become standard on all new Scenic and Megane models. Plug & Charge enables a seamless digital handshake between car and selected public chargers to automatically authorise payment and start charging without the need to use an app or payment cards. Esprit Alpine models also get a new face ID feature that will automatically set the driver profile and seating position by recognising who's sitting in the driving seat, while the rear-view camera quality has also been improved. The rear LED lighting signature on the Megane has also been updated. Order books for the revised Megane and Scenic ranges are expected to open at the end of April, with first deliveries following on a month or so later.
Yahoo
08-04-2025
- Automotive
- Yahoo
Do I need to pay car tax? New rules and rates for 2025 as electric vehicles included for first time
Changing road tax rules will affect all drivers in 2025 as rules that came into force from 1 April bring increased or new charges for most, among a host of other potential bill increases. Motorists face increases across the board, as most electric vehicle owners now need to pay the normal band of vehicle excise duty (or car tax) for the first time. Revenue from car tax is collected by the Driver and Vehicle Licensing Agency (DVLA) to pay towards things like road improvements and infrastructure, as well as other areas of public spending. The DVLA holds information about the tax on its national database and carries out regular checks using number plate recognition cameras to monitor non-payments. How much car tax a driver pays generally depends on when their vehicle was first registered, the type of vehicle it is, and the CO2 emissions it produces. There can also be extra charges for more expensive vehicles, alongside certain exemptions. Here's everything you need to know about the rules in 2025. From April this year, electric cars, vans and motorcycles have begun paying car tax in the same way as petrol and diesel vehicles. For new zero-emission cars registered on or after 1 April 2025, owners will only need to pay the lowest first year rate of car tax. This is currently £10 a year. After the first year, newly registered cars will move to the standard rate of £195 a year. Zero-emission cars first registered between 1 April 2017 and 31 March 2025 will also pay the standard rate. New zero-emission cars with a list price exceeding £40,000 and registered on or after 1 April will also now be charged for the Expensive Car Supplement for five years. This will be £425 for 2025. For zero and low-emission cars first registered between 1 March 2001 and 30 March 2017, car tax will be £20, in line with the Band A charge for other petrol and diesel vehicles. Owners of petrol and diesel cars that meet certain emission levels will pay a first-year rate that is based on its CO2 emissions. This will range from £10 to £5,490 for petrol cars. This lower level is only for petrol cars that have zero emissions – for even 1g/km it will rise to £110. For the average petrol car, which has emissions of around 143g/km, the charge would be £1,360. For diesel cars, the charges range from £110 to £5,490. For the average diesel car, which has emissions of around 164g/km, the charge would be £2,190. Rates for the second tax payment onwards are called standard rates, which is what most drivers will be paying. For all cars – petrol, diesel and electric – the charge in 2025 will be £195. However, there are additional rules for expensive car owners to be aware of. Vehicles with a list price of over £40,000 have to pay a supplement for the first five years. This will be £425 from April 2025, bringing the total car tax paid to £620. For vehicles first registered in this 16-year window, there are 13 tax bands which could be charged based on its CO2 emissions. This ranges from 101g\km, at £20, to over 255g\km, at £760. Any vehicle with emissions at or under 100g/km will pay £20 in 2025. A vehicle's CO2 emission details can be found on its V5C registration certification. Alternatively, the details are available on but you will need to know when your car was registered and its exact model. Vehicles that are over 24 years old in 2025 are charged a standard car tax rate at two levels based on the size of their engine. For those with engines under 1549cc, the charge is £220. For those over this, it's £360. As with electric cars, zero-emission motorbikes and vans are now charged car tax, both at the lowest rate. For motorbikes, the amount liable in car tax is based on engine size, ranging from £26 for an engine under 150cc, to £121 for an engine over 600cc. For most vans, the charge is either £140 for early Euro 4 and Euro 5 compliant vehicles, or £345 for all others. There are a few vehicles and people that may be exempt from car tax, so its important to check that you're not paying if you don't have to. Vehicles which don't need to pay car tax include: Agricultural Vehicles such as tractors Disabled Vehicles (only if the registered disabled person is eligible) Disabled passenger Vehicles used by groups providing transport for disabled people Classic Vehicles (over 40 years old) Vehicles that have been take off the road with a Statutory Off Road Notification (SORN) There are also a few social security payments which will exempt you from car tax if you receive them. These are: Higher rate mobility component of Disability Living Allowance (DLA) Enhanced rate mobility component of Personal Independence Payment (PIP) Enhanced rate mobility component of Adult Disability Payment (ADP) Higher rate mobility component of Child Disability Payment War Pensioners' Mobility Supplement Armed Forces Independence Payment When investing, your capital is at risk and you may get back less than invested. Past performance doesn't guarantee future results.
The Independent
08-04-2025
- Automotive
- The Independent
Do I need to pay car tax? New rules and rates for 2025 as electric vehicles included for first time
Changing road tax rules will affect all drivers in 2025 as rules that came into force from 1 April bring increased or new charges for most, among a host of other potential bill increases. Motorists face increases across the board, as most electric vehicle owners now need to pay the normal band of vehicle excise duty (or car tax) for the first time. Revenue from car tax is collected by the Driver and Vehicle Licensing Agency (DVLA) to pay towards things like road improvements and infrastructure, as well as other areas of public spending. The DVLA holds information about the tax on its national database and carries out regular checks using number plate recognition cameras to monitor non-payments. How much car tax a driver pays generally depends on when their vehicle was first registered, the type of vehicle it is, and the CO2 emissions it produces. There can also be extra charges for more expensive vehicles, alongside certain exemptions. Here's everything you need to know about the rules in 2025. New rules for electric vehicles From April this year, electric cars, vans and motorcycles have begun paying car tax in the same way as petrol and diesel vehicles. For new zero-emission cars registered on or after 1 April 2025, owners will only need to pay the lowest first year rate of car tax. This is currently £10 a year. After the first year, newly registered cars will move to the standard rate of £195 a year. Zero-emission cars first registered between 1 April 2017 and 31 March 2025 will also pay the standard rate. New zero-emission cars with a list price exceeding £40,000 and registered on or after 1 April will also now be charged for the Expensive Car Supplement for five years. This will be £425 for 2025. For zero and low-emission cars first registered between 1 March 2001 and 30 March 2017, car tax will be £20, in line with the Band A charge for other petrol and diesel vehicles. Cars first registered from 1 April 2017 First-year rates Owners of petrol and diesel cars that meet certain emission levels will pay a first-year rate that is based on its CO2 emissions. This will range from £10 to £5,490 for petrol cars. This lower level is only for petrol cars that have zero emissions – for even 1g/km it will rise to £110. For the average petrol car, which has emissions of around 143g/km, the charge would be £1,360. For diesel cars, the charges range from £110 to £5,490. For the average diesel car, which has emissions of around 164g/km, the charge would be £2,190. Second year onwards Rates for the second tax payment onwards are called standard rates, which is what most drivers will be paying. For all cars – petrol, diesel and electric – the charge in 2025 will be £195. However, there are additional rules for expensive car owners to be aware of. Vehicles with a list price of over £40,000 have to pay a supplement for the first five years. This will be £425 from April 2025, bringing the total car tax paid to £620. Cars first registered between 1 March 2001 and 31 March 2017 For vehicles first registered in this 16-year window, there are 13 tax bands which could be charged based on its CO2 emissions. This ranges from 101g\km, at £20, to over 255g\km, at £760. Any vehicle with emissions at or under 100g/km will pay £20 in 2025. A vehicle's CO2 emission details can be found on its V5C registration certification. Alternatively, the details are available on but you will need to know when your car was registered and its exact model. Cars first registered before 1 March 2001 Vehicles that are over 24 years old in 2025 are charged a standard car tax rate at two levels based on the size of their engine. For those with engines under 1549cc, the charge is £220. For those over this, it's £360. What about motorbikes and vans? As with electric cars, zero-emission motorbikes and vans are now charged car tax, both at the lowest rate. For motorbikes, the amount liable in car tax is based on engine size, ranging from £26 for an engine under 150cc, to £121 for an engine over 600cc. For most vans, the charge is either £140 for early Euro 4 and Euro 5 compliant vehicles, or £345 for all others. Could you be exempt from car tax? There are a few vehicles and people that may be exempt from car tax, so its important to check that you're not paying if you don't have to. Vehicles which don't need to pay car tax include: Agricultural Vehicles such as tractors Disabled Vehicles (only if the registered disabled person is eligible) Disabled passenger Vehicles used by groups providing transport for disabled people Classic Vehicles (over 40 years old) Vehicles that have been take off the road with a Statutory Off Road Notification (SORN) There are also a few social security payments which will exempt you from car tax if you receive them. These are: When investing, your capital is at risk and you may get back less than invested. Past performance doesn't guarantee future results.
