From April 2025, electric vehicle (EV) owners in the UK will begin paying road tax for the first time. This is because the current exemption from Vehicle Excise Duty (VED) comes to an end. In addition, the UK Government has confirmed that from 2028, a new pay-per-mile tax, called the Electric Vehicle Excise Duty (eVED), will be introduced to replace the loss in fuel duty as more drivers make the switch from petrol and diesel.
Why Is the EV Road Tax Being Introduced?
The government currently loses billions each year in fuel duty and road tax exemptions due to the growing number of zero-emission vehicles on the road. As EV adoption increases, the Treasury is looking to rebalance the tax system so that all drivers contribute more fairly to the upkeep of UK roads.
EVs are better for the environment. However, they still use road infrastructure in the same way as petrol or diesel cars. The aim is to create a level playing field while still encouraging drivers to make greener choices.
How Much Road Tax Will EV Drivers Pay?
From April 2025, all newly registered electric vehicles (EVs) will begin to pay standard road tax (Vehicle Excise Duty). Here’s a breakdown of what to expect:
• New EVs registered on or after 1 April 2025 will pay the standard first-year VED rate (currently £10), followed by an annual rate of £190 per year.
• EVs registered between 1 April 2017 and 31 March 2025 will also move to the same annual VED of £190.
• EVs with a list price over £40,000 will pay an additional £390 luxury car supplement for five years (from the second year after registration).
So for most EV owners, road tax will cost around £190 per year – still significantly lower than many higher-emission petrol or diesel cars, especially when combined with lower running and charging costs.
Looking ahead, the government has proposed a new pay-per-mile road tax system for EVs and hybrids from April 2028. Under current proposals:
• EVs would pay around 3 p per mile.
• Hybrids would be taxed at about 1.5 p per mile.
For a typical EV driver doing 8,000 miles per year, the cost under this new model would be:
8,000 miles × 3 p = £240 per year
That is more than the current flat rate – but still modest when weighed against savings on fuel, maintenance and home charging.
This would replace the flat £190 fee once the new system is introduced – though until official figures are confirmed, this is still an estimate.
Please note: At the time of writing, there is no confirmed system in place for accurately tracking EV mileage for road tax purposes, especially for vehicles not subject to annual MOTs. The details are still under review and subject to change by the UK government.
Will Electric Vehicles Still Be Worth It?
Although the EV road tax brings new annual costs, EVs still offer significant savings when compared to petrol or diesel vehicles. Let’s look at a few key reasons:
• Charging is still cheaper than refuelling – Charging at home on an EV-friendly tariff like Octopus Go costs as little as 7p per kWh overnight. In contrast, petrol prices remain unpredictable and generally much higher per mile.
• EVs are more efficient – Electric vehicles convert more of the energy from the battery into motion. This means fewer wasted miles and reduced overall running costs.
• Less maintenance – With fewer moving parts, EVs typically require less servicing and incur lower repair bills over time.
In most cases, the savings from fuel and maintenance easily outweigh the added cost of road tax.
EV Charger Finance Options Available
At West Coast Electrical & Renewables, we understand that investing in an EV charger is a big decision. That’s why we offer flexible finance options to help make the switch to electric more accessible.
For example, the Simpson & Partners Home 7kW charger, which comes with a market-leading 10-year enclosure warranty, is currently available with just a £99 deposit and 12 months interest-free finance. That’s £99 per month and a total repayable amount of £1,287, including full supply and installation.
This model combines smart features, sleek aesthetics and PEN fault protection as standard. It’s a great choice for homeowners looking for style and safety and with 4 colour options, it suits most modern properties.
We also offer finance across other Simpson & Partners models and a range of leading EV charger brands, including those with solar compatibility, load management and smart charging features. Whether you’re after discreet design or a high-power charger for larger homes, we’ll help you find the right solution to match your budget and energy needs.
Get in touch with our team to discuss EV charger finance and explore which model will work best for your home.
Please note: Finance offer correct at the time of posting. Terms and conditions apply. Subject to credit approval and product availability. Prices and offers may change without notice.
Home Charging Is Still a Major Benefit
One of the biggest advantages of owning an EV is the ability to charge at home. You don’t have to queue at petrol stations or worry about fluctuating fuel prices. Simply plug in overnight and wake up with a full charge, ready for the day ahead. The Intelligent Octopus Go tariff offers EV drivers rates as low as 7p per kWh. This applies during the six-hour off-peak window, making it a smart way to save. This low rate applies during off-peak hours.
Even with EV road tax on the horizon, this daily convenience and affordability are hard to beat.
Please note: Tariffs such as Intelligent Octopus Go are subject to availability and may change at any time. Prices, eligibility and terms are set by the energy provider. This should be checked directly with Octopus Energy for the most up-to-date information.
EVs Still Offer Long-Term Savings
Even with road tax on the horizon, EVs remain a cost-effective choice for many households. Charging at home using smart tariffs can bring electricity costs down to as little as 7p per kWh, especially overnight. Compare that to rising fuel prices and it’s easy to see why many drivers are making the switch.
In addition to charging savings, EVs also tend to have lower maintenance costs than petrol or diesel vehicles. Because EVs have fewer moving parts, there’s less that can go wrong. Services are often cheaper and less frequent, and there’s no need to worry about things like oil changes, exhaust issues or timing belts.
These savings, combined with lower day-to-day running costs, make EVs a smart long-term investment, even with road tax changes on the way.
Want to Know More About EV Charger Installations?
West Coast Electrical & Renewables is your trusted team for EV charger installations in Blackpool and across Lancashire. We’re fully qualified, NICEIC-approved and experienced in both electrical and renewable technologies.
We install a full range of home EV chargers, including brands like Hypervolt, Ohme, Easee, Zappi and Simpson & Partners.
We’ll help you find the right charger – whether you’re charging your first EV or upgrading your current setup. We match your charger to your home, budget, and energy use.
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Disclaimer: Road tax rates and energy tariffs are subject to change. Always check with official government sources or energy providers for the latest information.
