Car tax check: the one vehicle change you can make to save on April 2025 UK road tax price and rates rises

• Vehicle tax rates will rise by £5 in April for cars registered after 2017
• Electric vehicles (EVs) will no longer be exempt from road tax starting in April 2025
• EVs will pay a minimal rate of £10 in the first year, then move to the standard rate
• To save on tax bills, consider switching to an EV or opting for a low-emission vehicle
• Choosing a fuel-efficient car or maintaining your current vehicle can help reduce road tax costs

Next month, significant changes to the UK’s vehicle tax laws will affect many car owners.

From April 2025, the standard rate of tax for cars registered after April 2017 will rise by £5, bringing it to £195 a year.

While this may not seem like much, it’s important to be aware of the broader impact the upcoming changes could have on your vehicle tax bill, particularly if you drive an electric vehicle (EV) or a car registered before 2017.

The exact amount of tax you will pay will depend on the year your car was registered and the type of fuel it uses. But one thing is certain: it’s not just the rise in tax rates you should be preparing for.

For the first time, electric vehicles will no longer be exempt from road tax. These changes come as part of a broader push towards reducing the UK’s carbon emissions, but it could also mean higher bills for those who currently enjoy tax-exempt EV ownership.

So, what can you do now to mitigate these rising costs? Here is everything you need to know.

(Photo: Leon Neal/Getty Images) | Getty Images

One thing you can do: switch to an electric vehicle

The upcoming changes to the vehicle tax laws are part of the country’s broader effort to reduce carbon emissions and promote more sustainable forms of transport.

As such, and with the tax changes looming, one of the best ways to save money on your vehicle tax is to switch to an EV.

The road tax system is designed to incentivize the use of cleaner, more fuel-efficient cars. The lower your car’s CO2 emissions, the lower your vehicle tax rate will be.

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A transition could also provide long-term savings. Although you may face an increase in the road tax rate once the tax exemption ends, EVs generally have lower maintenance and fuel costs, which can offset the increase in tax bills.

Electricity is also significantly cheaper than petrol or diesel, meaning the total cost of owning and operating an EV is likely to be lower than that of a petrol or diesel vehicle in the long term.

There are also still various financial incentives for purchasing an EV, including grants and subsidies from the government, which can make the initial cost of purchasing an electric vehicle more manageable.

If you’re not ready to make the switch to an electric vehicle just yet, another way to save on your vehicle tax is by opting for a car with lower emissions.

By choosing a car with lower CO2 emissions (for example, a hybrid or a smaller, more fuel-efficient petrol or diesel model), you can save on road tax both now and in the future.

If you already own a car and are not planning on buying a new one soon, keeping up with regular maintenance can also help maintain fuel efficiency and, potentially, reduce the amount of tax you pay based on emissions.

With these upcoming changes to vehicle tax, it's important to stay informed and take action now to save on your bills. Have you already started planning for the rise in road tax, or are you considering switching to an EV? Share your thoughts in the comments.