New DVLA rules and regulations are coming into effect in the UK in 2025, impacting fuel rates, number plates, and electric vehicle taxes. Stay informed to avoid fines.
UK drivers face a series of changes to motoring regulations and costs starting March 1, 2025. These new rules, announced by organizations such as the DVLA and HMRC, cover areas from fuel rates to number plates and electric vehicle taxes. Understanding these changes is crucial for avoiding fines and managing expenses.
Advisory Fuel Rates
The HMRC has updated the Advisory Fuel Rates (AFR) effective from March 1, 2025. These rates are used to reimburse employees using company cars for business travel. The changes are as follows:
- Diesel cars (up to 1,600cc): Rate increases from 11 to 12 pence per mile (ppm).
- Petrol vehicles (1,401-2,000cc): Rate increases from 14ppm to 15ppm.
- Electric vehicles: The advisory fuel rate remains at 7ppm.
These rates are reviewed quarterly by HMRC in March, June, September, and December. Companies use these rates to reimburse employees for business travel in their company cars or when employees need to repay the cost of fuel used for private travel. Previous rates can be used for up to one month after the new rates take effect.
New Number Plates
The new ‘25’ number plates were introduced on March 1, 2025, for newly registered cars. These plates signify that the vehicle was registered on or after this date. Motorists should be aware of the strict rules surrounding custom number plates. Failure to comply can result in a £1,000 fine and confiscation of the plate without recompense.
A key rule is that drivers cannot display a number plate that suggests their vehicle is newer than it is. For example, a car registered on March 2, 2015, can have a number plate with ‘15’ as its third and fourth characters, but not ‘16’, ‘17’, or later numbers.
Number plates are updated twice a year, in March and September. The September release will feature plates with ‘75’ as the third and fourth characters. The same rule applies: the number plate must not appear newer than the vehicle’s registration date.
The DVLA has strict regulations regarding the shape, font, color, and visibility of number plates. The DVLA provides up-to-date rules and a personalized plate finder to help drivers comply.
Tax Changes for Electric Vehicles
Starting April 1, 2025, electric vehicle owners will face new tax regulations. All electric vehicle owners will need to start paying a higher band of vehicle excise duty (VED), also known as car tax. This will be £10 in the first year for cars registered after this date.
While this is significantly below the standard annual rates for other vehicles (£190 for cars, £335 for vans, and £25 for motorcycles), electric vehicle owners need to be aware of additional changes. From April 1, 2025, those with electric vehicles worth over £40,000 will also need to pay the Expensive Car Supplement, which has been in effect for other car types since 2017. This supplement will be £195 in 2025 and is added on top of car tax.
Electric, zero, or low-emission vehicles registered on or after April 1, 2025, will pay a first-year tax rate of £10. From the second tax payment onward, this will increase to the standard rate of £195 per year.
Electric vehicles registered between April 1, 2017, and March 31, 2025, will also move to the standard rate of £195. EVs registered between March 1, 2001, and March 31, 2017, will move to the first band with a VED value, resulting in a tax payment of £20.
Previously exempt from the Expensive Car Supplement, EVs registered on or after April 1, 2025, costing over £40,000 will now be liable for this additional cost. This means owners of such EVs will pay the standard rate plus the supplement for the first five years from the start of the second payment, totaling £620 per year in road tax.
Advice for New Car Buyers
Rory Brimmer, Director of Turo UK, advises drivers to thoroughly test new cars before purchasing, especially with the advancements in technology. New drivetrains, software systems, and manufacturers mean that cars can feel significantly different from older models.
Brimmer suggests that potential buyers spend adequate time with cars before making a purchase decision. He notes that EVs, while fantastic, feel radically different from traditionally fueled cars and require understanding the charging process. He recommends testing how the car handles the commute, fits the weekly shopping, and how easy charging is in daily routines.
Extended test drives on car-sharing platforms like Turo can help work out these factors, which may not be apparent in a brief dealer test drive.
RAC Checklist for Test Drives
The RAC provides a checklist for motorists on test drives, including:
- Checking if the engine starts properly from both cold and warm.
- Listening for any unusual noises or jolts when driving over bumpy roads.
- Ensuring all gears select easily without sloppy transitions or crunching noises.
These checks help ensure the car is in good condition and meets the driver’s needs.
Staying informed about these new rules and regulations is essential for UK drivers in 2025 to ensure safe and affordable driving. Adhering to DVLA guidelines and understanding tax implications can help drivers avoid penalties and manage their vehicle-related expenses effectively.
Sources: https://www.independent.co.uk/news/uk/home-news/dvla-new-rules-car-tax-number-plates-b2706400.html
https://www.birminghammail.co.uk/motoring/motoring-news/new-uk-car-rule-saturday-31090823
https://www.westerntelegraph.co.uk/news/24963696.hmrc-rule-changes-petrol-diesel-cars-march-1-2025/