EV Road Tax Changes in 2025: What you need to know

From 1 April 2025, EV owners in the UK will no longer be exempt from Vehicle Excise Duty (VED), commonly known as road tax. This change means EVs will now have annual tax costs, making now the best time to make the switch before rates go up.

What are the 2025 EV Road Tax Changes?

New VED Rates for EVs

• New EVs (registered from 1 April 2025): £10 for the first year, rising to £195 per year from year two.

• Existing EVs (registered between 2017–2025): £195 per year from April 2025.

• Older low-emission cars (2001–2017): Band A vehicles move to Band B, paying £20 annually.

• EVs over £40,000: Additional £410 per year for five years under the Expensive Car Supplement.

• Electric Vans: Will be taxed the same as petrol/diesel vans, currently £335 annually.

What this means for EV Owners

EVs remain cheaper to own and run compared to petrol, diesel, or hybrid cars, which will see their first-year tax double from April 2025.

However, with EVs now subject to road tax, getting ahead of the 2025 tax charges is key to locking in the best deal before costs rise.

Why now is the best time to get an EV

1. Avoid Higher Upfront Costs

With showroom prices expected to increase and tax rates rising, switching to an EV before April 2025 ensures you avoid additional costs.

2. Uber Clean Air Plan – Use It or Lose It!

If you're an Uber driver, the Uber Clean Air Plan £3,500 top-up offer ends on 31 March 2025. This means you can still use your CAP to either reduce your weekly payment by £75 until your CAP runs out or discount your CAP balance over the life of your plan.

Remember, if you don’t claim it before the deadline, you lose access to this top-up.

3. EVs still save you money in London

Despite road tax changes, EVs remain the most cost-effective choice for PCO drivers. You still benefit from:

• ULEZ & Congestion Charge exemption (saving up to £105 per week)

• Lower running & maintenance costs

• Government incentives & potential tax credits

Buy & Own an EV with Splend

With Splend’s Flexi Own plan, you can get a brand-new EV on a flexible, all-inclusive plan designed for PCO drivers. Our package includes:

✔ No credit checks – all applications considered
✔ PHV-licensed, Uber-ready cars
✔ Insurance, servicing & maintenance
✔ 24/7 roadside assistance
✔ Dedicated customer support
✔ Up to 4 weeks payment holiday
✔ Free PCO-ready replacement vehicle

By choosing Flexi Own, you’re not just subscribing, you’re on the fast track to ownership within 4-5 years with no hidden fees or interest.

About Splend

At Splend, we believe in drivers. We know their vehicles need to work harder than most; that they drive more miles than most; that their insurance is hefty; their maintenance costs high and that they can face unreasonable finance rates – which is a heavy load to carry on their own.

That’s why at Splend, we exist to support rideshare drivers with a new model, that takes all those car ownership costs, and provides them for less, with lower purchase prices, better rates, lower servicing and insurance costs – all for one weekly repayment, all in one place.