Electric van drivers will face a new £355 annual road tax charge beginning in April, mirroring the rate for petrol and diesel light goods vehicles.
The change, set to take effect in less than three weeks, means electric vans will no longer benefit from a zero-Vehicle Excise Duty (VED) rate. Starting in April 2025, these vehicles will be subject to the standard road tax rates applicable to other light goods vehicles.
Ayvens stated, “In the first year of registration, cars will pay the lowest first-year rate, currently £10, and vans will pay the standard rate, currently £345. After that, the standard rate will be charged on the vehicle’s registration anniversary. Currently, this is £195 for cars and £345 for vans for the tax year 2025/26, and this increases annually in line with inflation.”
EV specialists at Drive Electric explained: “Yes, electric vans will also be subject to road tax from April 2025…This means businesses and individuals using electric vans should anticipate additional costs, though EV vans will still offer lower running costs compared to their petrol or diesel counterparts.”
Electric cars registered on or after April 1, 2025, will pay a £10 first-year road tax until the 2029-2030 tax year. This is because first-year road tax is based on emissions, and EVs are in the lowest emissions band. The Labour Party government also confirmed that electric cars registered between April 1, 2017, and March 31, 2025, will pay the standard road tax rate of £195 starting April 1, 2025.
Furthermore, electric cars registered between March 1, 2001, and March 30, 2017, will now incur a £20 annual road tax. An expensive car supplement, or “luxury car tax”, will now apply to electric cars registered on or after April 1, 2025, adding an extra £425 on top of the standard road tax from the second to the sixth year of registration.
