If you’ve been eyeing up a salary sacrifice EV deal, you’ve probably heard that company car tax rates are going up in April 2027. The rate for electric cars will increase from 5% to 6% of the vehicle’s list price, which sounds like it could be significant. But how much will it actually cost you, … Read more
From 1st April 2025, the three-year exemption is over. EVs registered from that date pay Vehicle Excise Duty (VED, or road tax) just like petrol and diesel cars. Here’s what that actually costs in pounds and pence, based on the scenarios we’re asked about most often. The Basic Rules From April 2025 \p>EVs registered from … Read more
From April 2025, battery electric vehicles will no longer be exempt from Vehicle Excise Duty (VED), the tax most people still call road tax. If you own an EV or you’re in the middle of deciding whether to lease or buy one, here’s exactly what you’ll pay and when. The basic numbers: what you’ll actually … Read more
The benefit in kind (BIK) rate for electric company cars is set to rise from 2% to 3% in April 2027. If you’re considering an EV salary sacrifice scheme, that leaves you with a question: sign up now to lock in the lower rate, or wait eight months for potentially better lease deals and newer … Read more
If you’ve been charged vehicle excise duty (VED, often called road tax) on an electric car that should be exempt, you’re not alone. Since the VED changes came into effect in April 2025, we’ve heard from dozens of readers who’ve been incorrectly billed, despite their EVs being registered before the cut-off date that should have … Read more
If you’ve just received a brown envelope from the DVLA demanding money for your electric car, you’re not imagining things. The first wave of Vehicle Excise Duty (VED, commonly called road tax) bills for EVs registered between April 2017 and March 2025 started arriving in early 2026, and many owners are opening them with a … Read more
From April 2025, electric vehicles registered from that date will start paying Vehicle Excise Duty (VED), commonly known as road tax, for the first time. The rates kick in properly from April 2026, and they’re not trivial. If you’re considering an EV, here’s exactly what you’ll pay and how it compares to petrol and diesel … Read more
If you bought an electric car before April 2025, your first Vehicle Excise Duty bill is either already here or on its way. After years of exemption, EVs registered from 1 April 2025 onwards now pay road tax like any other vehicle, and for many drivers, the numbers have come as an unpleasant surprise. Here’s … Read more
If you own an electric car registered before April 2025, you’ll start paying Vehicle Excise Duty (VED, or road tax) soon. But there’s widespread confusion about exactly when that first payment is due, and how much you’ll actually pay. The short version: you won’t pay anything on 1st April 2025. Instead, you’ll start paying from … Read more
If you’re signing up for a salary sacrifice electric car in 2025 or 2026, there’s a very good chance your contract will straddle April 2028. That’s when the current ultra-low 2% Benefit-in-Kind (BIK) rate for pure electric cars is guaranteed only until, with the rate widely expected to rise to 3% or 4% from the … Read more