The New Year brings a host of new trends for every industry sector, including our own. For the motoring world in general, 2025 means a whole host of changes, and being prepared could just save you time and money. Read on to discover the changes to expect during the year ahead and beyond…

Electric vehicles to pay Vehicle Excise Duty (VED)

The shift to electric motoring certainly isn’t something that’s happening overnight. There are many hurdles to overcome before the adoption of electric vehicles (EVs) can really take off, and 2025 brings another obstacle that could just get in the way of the rise of electric and low emission cars.

For years, electric and low emission vehicles have enjoyed exemptions from certain costs, but no longer! From 1^st April 2025, all registered keepers of electric, zero or low emission vehicles will have to pay Vehicle Excise Duty (VED), known more commonly as road or car tax. This includes cars, vans and motorcycles.

Cleaner vehicles will be treated the same as petrol and diesel cars, vans and motorbikes under the new rules.

Changes to car tax rates

It’s not just electric vehicle owners that will be in for a shock when their car tax bill arrives. All motorists should be braced for hefty price hikes from April 2025, with diesel van drivers left significantly out of pocket and zero emission cars paying the lowest rates.

The First Year Rate or ‘showroom tax’ will see the biggest increase, with costs based on the vehicle’s overall CO2 emissions.

Benefits in kind tax rates to increase

Elsewhere, there are more tax increases to be found, which could affect vehicle ownership or use, especially if you have a company car. Benefits in kind (BIKs) have long provided incentives for workers outside of wages or salaries. Yet, with tax rates on benefits in kind set to increase, these additional perks may become things of the past.

Congestion charge exemptions end for EVs

More bad news for EV owners – 2025 also spells the end of congestion charge discounts and exemptions. The London congestion charge will be payable for zero emission cars, vans and bikes from 25^th December 2025.

Self-driving vehicles from 2026

Self-driving vehicles have been on the radar for some time now, but they could be set to hit British roads as early as 2026 following an exciting new law change, known officially as the Automated Vehicles (AV) Act.