Electric Vehicles Facing Road Tax Changes: Why You Should Buy an Electric Vehicle Charger Now
The UK government’s decision to introduce road tax for electric vehicles (EVs) starting in April 2025 marks a significant policy shift. While this change may slightly increase the cost of owning an EV, it also underscores the importance of investing in efficient home charging solutions. Here’s everything you need to know about the upcoming changes and why now is the perfect time to consider purchasing an EV charger.
What Are the New Road Tax Rules for Electric Vehicles?
From April 1, 2025, all electric vehicles will be subject to Vehicle Excise Duty (VED), commonly known as road tax. New EVs registered on or after this date will pay £10 for their first year, followed by a standard rate of £195 annually from their second year onward. Additionally, EVs priced over £40,000 will incur an Expensive Car Supplement of £425 annually for five years, bringing their total annual tax to £620.
This change also affects older EVs. Vehicles registered between April 2017 and March 2025 will transition to the standard £195 rate, while those registered between March 2001 and March 2017 will pay £20 annually. Although these costs are modest compared to fuel expenses for petrol or diesel cars, they highlight the need for cost-saving measures like home charging.
Why Is the Government Introducing Road Tax for EVs?
The move to tax electric vehicles stems from a growing revenue gap caused by declining fuel tax collections as more drivers switch to EVs. Fuel taxes have historically funded road maintenance and infrastructure improvements. By extending VED to EVs, the government aims to ensure all road users contribute fairly.
While this policy may seem counterintuitive given the UK’s net-zero goals, it reflects the mainstream adoption of EVs. The government continues to support EV ownership through incentives like reduced Benefit-in-Kind (BIK) rates and grants for home charging installations.
Will Road Tax Discourage Electric Vehicle Adoption?
Despite the new tax, EVs remain an attractive option due to their lower running costs. For instance, charging an EV at home is significantly cheaper than refueling a petrol car. Additionally, EVs require less maintenance since they have fewer moving parts.
The introduction of road tax is unlikely to deter most buyers when weighed against these benefits. In fact, now is an excellent time to invest in a high-quality home charger, which can further reduce your long-term costs.
How Can a Home Charger Offset Costs?
Installing a home charger allows you to take advantage of off-peak electricity rates, saving hundreds of pounds annually compared to public charging. Many chargers also come with smart features that optimise energy usage and integrate with solar panels or battery storage systems.
Atlantic Renewables offers expert installation services for EV chargers tailored to your needs. Our team ensures your charger is installed safely and efficiently, helping you maximise your savings.
What Are the Benefits of Installing an Electric Vehicle Charger?
A dedicated home charger provides faster charging speeds compared to standard sockets and enhances convenience by allowing you to charge overnight. With energy prices fluctuating, a home charger lets you control your costs more effectively. Additionally, some chargers are eligible for government grants, reducing upfront expenses.
For those considering solar PV systems, pairing your EV charger with solar panels can further reduce your carbon footprint and energy bills. Atlantic Renewables specialises in integrating solar solutions with EV chargers for maximum efficiency.
Are There Any Financial Incentives for Home Charging?
The UK government continues to offer grants like the Electric Vehicle Homecharge Scheme (EVHS), which covers up to 75% of installation costs for eligible homeowners. These incentives make it even more affordable to invest in a home charger.
Atlantic Renewables can guide you through the grant application process and recommend chargers that qualify for these schemes.
Why Should You Act Now?
With road tax changes looming and energy costs on the rise, there’s no better time to invest in an electric vehicle charger. By acting now, you can lock in savings before the new tax rates take effect and enjoy the convenience of charging at home.
Atlantic Renewables offers a range of top-quality chargers and professional installation services. Contact us today to learn how we can help you prepare for a greener future.
Get in Touch
If you’re looking to install an electric vehicle charger or explore solar PV solutions, Atlantic Renewables is here to help. Call us on 0161 207 4044 and let our experts guide you through the process of making your home EV-ready!
