Drivers warned they could face £345 fee in less than 3 weeks amid tax rise
Drivers across the UK are bracing for a spike in their motoring costs with incoming Vehicle Excise Duty (VED) changes set to take effect from April 1. Van owners, in particular, are set to feel the pinch with potential bills soaring up to £345 as VED rates are adjusted to account for the Retail Price Index (RPI) inflation.
An Express.co.uk report has outlined that van drivers who currently pay £335 a year will face an increase of £10. However, this is less steep than the £15 hike experienced the previous year, when fees grew from £320.
Automotive specialists at Ayvens warned about the “significant changes to vehicle tax” on the horizon, which are said to impact a broad swath of British motorists, including both car and van proprietors. An Ayvens spokesman said: “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.”
Moreover, on subsequent anniversaries of a vehicle’s registration, the standard rate will apply. At present, for the tax year 2025/26, this is pegged at £195 for cars and £345 for vans, both set to escalate annually in step with inflation rates.
Van usage on Britain’s roadways has witnessed a marked upturn, with statistics provided by Zego showing that the number of licensed vans has doubled to 4.6 million today, up from 2.3 million back in 1998.Looking ahead to 2025, electric car owners will face a new challenge as Vehicle Excise Duty (VED) fees will be introduced, ending the current exemptions and potentially catching out those who have invested in electric vans.
Experts at Drive Electric have confirmed: “Yes, electric vans will also be subject to road tax from April 2025.” Furthermore, they added: “Currently, light commercial EVs benefit from a zero-VED rate, but they will soon be required to pay the same standard rates as other light goods vehicles.”
This increase means that businesses and individuals using electric vans need to prepare for extra costs, although it’s noted that electric vans will continue to have lower running expenses than their petrol or diesel equivalents.
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