UK electric vehicle tax

If you’ve been enjoying the smug satisfaction of gliding silently past petrol stations in your electric car, sipping your oat-milk latte and telling everyone you’re “saving the planet one charge at a time,” then brace yourself, because the UK Government has decided that EV drivers have had it far too easy.

Yep – from 2025 onwards, electric vehicles will officially be paying Vehicle Excise Duty (VED). In other words: the electric vehicle tax has arrived, and the peace, love and low tax era is coming to an end.

But don’t panic. In true Paisley Autocare fashion, we’re going to break it all down, explain exactly what’s changing, what it means for your wallet, and of course add a wee sprinkle of humour to soften the blow.

So plug in, buckle up, and let’s talk tax.

Why Is the Government Introducing an Electric Vehicle Tax?

According to official explanations, the idea is “fairness.” Electric vehicle owners don’t currently pay VED, meaning the Government is missing out on billions in revenue. And if there’s one thing the Government loves, it’s revenue. And paperwork. And occasionally annoying drivers.

But let’s be honest:

They saw EV sales booming
They saw people saving hundreds every year
They saw petrol drivers crying into their receipts

…so naturally, they said: “Aye, that’ll do. Time to tax it.”

Electric cars were once treated like VIPs free charging, no congestion fees, zero tax, priority at the traffic lights (okay, that last one isn’t true but it felt like it). Now they’re being pulled back into the same queue as everyone else.

Source @ https://x.com/RachelReevesMP

So What Exactly Is Changing?

Here’s where things get interesting. From 1 April 2025, ALL electric vehicles—whether brand new, used, battery-powered, hydrogen-powered or something futuristic that looks like it escaped a Marvel film—will fall under VED rules.

1. Brand New EVs Registered From 1 April 2025

They’ll pay the standard first-year VED rate:
£10 in year one, rising to £190 per year after that.
(So still cheaper than a 2.0-litre petrol car, but the free ride is officially over.)

2. EVs Registered Before 1 April 2025

Even if you bought your EV in 2014 when everyone thought Tesla was a type of Greek pastry, you’ll now pay the standard rate of £190 per year.

Yes, that includes:

Tesla
Nissan Leaf
BMW i3
Renault Zoe
Your neighbour’s weird Chinese EV that looks like a toaster
If it’s electric, it’s paying.

3. The Expensive Car Tax Applies Too

This one hurts…

If your EV had a list price of over £40,000, get ready for the expensive car supplement.

For 5 years (from years 2–6 of ownership), you’ll pay:

£190 standard rate
PLUS £390 “expensive car tax”
= £580 per year

Not fun.

This applies to:

Teslas
Polestar
Most Mercedes EQ models
Audi e-tron
Jaguar I-Pace
Basically anything that cost more than your first flat.

If you bought a used one, even at half the price?
Still counts. The Government doesn’t care what you paid – they care what it cost new. Classic.

Is This the End of EV Savings?

Not at all.

Even though the electric vehicle tax feels like a kick when drivers are already paying rising electricity prices, EVs still benefit from:

✔ Lower running costs

Charging is still cheaper than fuel (unless you’re using the wrong public charger—the ones that cost more per kWh than a mortgage).

✔ Less maintenance

Fewer moving parts = fewer things to break.
(Unless it’s a Tesla door handle. Then all bets are off.)

✔ No emissions charges

Clean Air Zones, ULEZ and Low Emission Zones all still favour EVs heavily.

✔ Better reliability stats

EVs tend to need fewer repairs than combustion cars… although when they do break, it can get interesting. And expensive. And emotional.

At Paisley Autocare, we’ve seen EV faults ranging from easily fixed sensor issues to full-blown “why is there a computer living where the engine should be?” moments. But overall, EVs remain cost-effective.

Why Are Some People Annoyed About the Electric Vehicle Tax?

Because the Government has changed the rules mid-game.

For years they shouted things like:

“Buy electric!”
“Go green!”
“Save the planet!”
“Don’t worry about tax, it’s free!”
“Trust us!”

Then, as soon as everyone bought one, they said:

“Aye… about that tax thing… fancy paying now?”

It’s a bit like someone offering free chips forever, then after your tenth visit saying: “Actually that’ll be £4.50, cheers.”

Electric vehicle owners feel like they were lured in with incentives, and now the rug is being pulled out from beneath them quietly, slowly, and with spreadsheets.

How Much Will the Average EV Driver Pay?

Let’s break it down simply.

If your EV cost less than £40k:

£190 per year
Same as most petrol cars.

If your EV cost more than £40k:

£580 per year (for 5 years)
After that, it drops back to £190.

If you’ve got a hydrogen vehicle:

Same rules apply — though if you’ve got one of those, fair play. You’re driving around in a science experiment.

What Does This Mean for the Used EV Market?

Here’s where it gets spicy.

Until now, one of the biggest selling points for used EVs was “zero road tax.”

Now?

EV buyers will start asking:

“How much is the electric vehicle tax?”
“Was the car over £40k when new?”
“Why am I paying £580 for a 7-year-old Tesla with a cracked bumper?”

Expect:

✔ Prices of expensive EVs to drop faster

Nobody wants the £580 surprise.

✔ More demand for EVs under £40k new

MG4, Kia e-Niro, Nissan Leaf, Renault Zoe—these become more appealing.

✔ Buyers being more cautious

People will check list prices religiously.
(If you’re selling an EV, get ready for the “was this over £40k when new?” question 47 times.)

What About Vans and Commercial EVs?

Aye, they’re getting taxed too.

From April 2025:

Electric vans will pay the same VED rate as diesel vans.

This includes:

Transit Electrics
e-Dispatch
e-Vivaro
The wee ones that look like milk floats for the 21st century

Fleet managers across the UK are already making noises that range from “typical!” to words we can’t publish in a family-friendly blog.

However, EV vans still save businesses money long-term, especially with low emissions zones expanding across Scotland and the rest of the UK.

At Paisley Autocare, we service more EV vans every year, especially for fleets trying to stay compliant while keeping running costs down.

How Will This Affect EV Adoption in the UK?

Funny enough, the Government claims this new electric vehicle tax won’t slow EV sales.

Meanwhile, half of Twitter disagrees.

Here’s the reality:

✔ EV sales will still grow

Manufacturers are pumping out new electric models faster than ever. And petrol cars are getting more and more expensive to run.

✔ Some people will hesitate

Especially buyers who just got used to the idea of “no road tax.”

✔ Fleets will do the maths

Even with the electric vehicle tax, EVs offer significant savings over time.

✔ Scotland will push ahead regardless

With strict clean-air policies in cities like Glasgow, businesses have no choice but to look electric sooner or later.

Paisley Autocare’s Honest Opinion

We work on EVs every day. We see the technology, the costs, the long-term benefits, and the reality of maintenance.

Here’s our straight-talking view:

✔ EVs are still cheaper to run

Even with the tax.
(Though DC charging prices could calm down a bit… seriously.)

✔ VED changes were always going to happen

The Government wasn’t going to let drivers glide around tax-free forever.

✔ The £40k rule is the most ridiculous part

Charging £580 a year because the original owner specced ventilated seats and a panoramic roof is wild.

✔ The EV shift is still happening

The tax won’t stop the transition it’ll just annoy people slightly along the way.

✔ Paisley Autocare will continue supporting EV owners

From servicing, tyres, brakes, high-voltage diagnostics and repairs, we’re investing heavily in EV expertise.
(And yes, we’re IMI Level 4 Electric Vehicle trained no messing about.)

Frequently Asked Questions About the Electric Vehicle Tax

1. When will the new electric vehicle tax begin?

1 April 2025.

2. Does this apply to all EVs?

Yes new and used.

3. Will hybrids be taxed too?

Most hybrids already pay VED, but from 2025 they’ll fall into the same tax categories as petrol cars.

4. Are EVs still cheaper?

Yes running costs, maintenance and fuel savings still make them cheaper.

5. Does the £40k expensive car tax apply to used EVs?

Yes. It goes by original list price, not what you paid.

6. Can Paisley Autocare service EVs?

Absolutely we’re EV-ready and trained for high-voltage repairs, diagnostics and maintenance.

Final Thoughts: The Electric Vehicle Tax Isn’t the End of the EV Revolution

Yes, the electric vehicle tax is annoying.
Yes, it removes a big incentive.
Yes, it’s the Government’s way of reminding EV owners that nobody escapes taxation—not even the environmentally friendly.

But EVs are still the future.
Still cheaper to run.
Still better for urban air quality.
Still packed full of tech that petrol cars could only dream of.

And regardless of how the Government changes the rules, Paisley Autocare will continue helping EV drivers stay on the road—reliably, safely and affordably.

Whether you drive petrol, diesel, hybrid or fully electric, our technicians are here to keep you running smoothly (and laughing at least a wee bit along the way).

BLACK FRIDAY

The New UK Electric Vehicle Tax: What Drivers Need to Know