From April 1, 2025, owners of vans in the UK will see an increase in their Vehicle Excise Duty (VED) car tax. According to Express.co.uk, the tax rates will rise in line with the Retail Price Index (RPI) inflation. This means van owners could face a bill of up to £345 annually to keep their vehicles on the road.
This increase of £10 from the current £335 is less severe than the previous year, when the rise was £15. Motoring experts at Ayvens have highlighted forthcoming “significant changes to vehicle tax” that will affect both car and van owners. Ayvens explained that in the first year of registration, cars currently pay a low first-year rate, which is £10, while vans face the standard rate, which is currently £345. After that, the standard rate is applied on the vehicle’s registration anniversary. For the 2025/26 tax year, this rate is currently £195 for cars and £345 for vans, and it increases annually in line with inflation.
The number of vans on UK roads is increasing. Recent figures from Zego indicate a rise to 4.6 million licensed vans today, double the 2.3 million recorded in 1998.
Notably, owners of electric vehicles will be subject to these upcoming changes. The current exemptions for electric cars and vans are ending, and electric van owners will now also have to pay VED. Experts at Drive Electric confirm that electric vans will be subject to road tax from April 2025. Currently, light commercial electric vehicles benefit from a zero-VED rate, but they will soon be required to pay the same standard rates as other light goods vehicles. While this change will add to the running costs for businesses and individuals using electric vans, it is important to remember that electric vans will continue to have lower running expenses compared to their petrol or diesel equivalents.
