Electric vehicle (EV) owners in the UK are at risk of receiving fines up to £1,000, as well as having their cars clamped or seized, if they fail to adhere to a simple car tax rule. Even though EVs currently qualify for tax exemption, the DVLA rules mandate that EV owners must complete the correct paperwork and register their cars in the tax system annually, or declare them as Statutory Off Road Notification (SORN).
Owners who neglect this requirement face an initial £80 fine, which can increase to £1,000 in extreme cases. Furthermore, their vehicles could be clamped or seized for failing to register their tax-free cars properly. Tim Alcock from LeaseElectricCar.co.uk expressed concern that some new EV drivers were caught off guard by this rule, resulting in unexpected fines.
The current tax exemption for EVs is set to change in 2025, as the UK government seeks to recoup lost tax revenue due to the shift from petrol and diesel vehicles to electric alternatives. From April 1, 2025, new EVs will be charged the same as the lowest-emitting petrol and diesel models in their first year, currently £10. Thereafter, they will be subject to the same flat rate as other cars, presently £180 per year. This change will also apply to EVs registered after March 31, 2017, meaning existing EV owners must prepare for the impending regulation.
Additionally, the 2025 change will terminate EVs’ exemption from the Expensive Car Supplement, also known as the luxury car tax. This tax imposes an extra £390 annual charge on cars with a list price over £40,000 for years two to six after registration, making most EV buyers liable for this additional fee.
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