Road Tax Increase: What Drivers Need to Know for April 2025

From April 2025, Northern Ireland drivers will see a significant increase in Vehicle Excise Duty (VED), commonly known as road tax, as the government moves to adjust tax rates to generate revenue and encourage greener transportation choices. Below, we break down the key changes and what they mean for you.

How Much Is Car Tax Going Up in April 2025 in Northern Ireland?

The exact increase in road tax depends on your vehicle's emissions and registration date. The standard rate for petrol and diesel cars is expected to rise in line with inflation, while first-year rates for high-emission vehicles will see steeper increases.

For luxury cars (those costing over £40,000), the additional VED surcharge will remain in place, meaning owners will continue to pay a higher annual rate.

How Much Will Electric Car Tax Be in April 2025?

A major shift in the 2025 VED update is the introduction of road tax for electric vehicles (EVs). Currently, EVs are exempt from VED, but from April 2025, they will be required to pay the same standard rate as petrol and diesel cars. This change comes as EV adoption grows, ensuring all road users contribute to infrastructure costs.

The rates are expected to be:

Electric, zero or low emission cars registered on or after 1 April 2025. You will need to pay the lowest first year rate of vehicle tax set at £10 from the 1st April 2025.

Payable from the second year on, this is currently set at £195 per year (subject to government review)

EVs costing over £40,000 will also incur an additional charge for five years

To find out more about the road tax increase for electric vehicles click here

How Do I Tax My Car?

Taxing your car remains a simple process through the DVLA website. You will need your V5C logbook and a payment method to complete the process. Tax can be paid annually or in monthly/bi-annual instalments.

Remember, if you purchase a car, the car tax does not transfer from the previous owner, so you must register and pay road tax before driving it.

What Else Should Drivers Know About the April 2025 UK Car Tax Increase?

The increase in road tax for 2025 aligns with inflation and new government policies aimed at funding road maintenance.
Diesel cars that do not meet Real Driving Emissions Step 2 (RDE2) standards will continue paying higher rates due to their environmental impact.
Hybrid vehicles will also see tax increases but may still benefit from slightly lower rates than petrol and diesel cars.
DVLA electric car tax changes will impact all battery-electric vehicle (BEV) owners, including those who previously enjoyed VED exemptions.

FAQ: UK Road Tax Increase 2025

The government is adjusting Vehicle Excise Duty (VED) rates to account for inflation, encourage greener vehicle choices, and ensure fair contributions from all road users, including electric vehicle owners.

Yes, standard VED rates for petrol and diesel cars will also increase in April 2025, first-year rates for high-emission vehicles will be higher.

Electric cars registered on or after 1 April 2025 will pay £10 first year road tax (based on emissions). From the second tax payment onwards, you will pay the standard rate of £195. Electric cars registered between 1 April 2017 and 31 March 2025 will pay the standard rate road tax of £195 from 1 April 2025. Electric cars registered between 1 March 2001 and 30 March 2017 will now pay £20 road tax a year.

Yes, hybrid vehicles will face a tax increase, but they may still have slightly lower rates compared to traditional petrol and diesel vehicles.

You can check your car's tax rate by visiting the DVLA website (www.gov.uk/vehicle-tax) and entering your vehicle details.

Yes, you can choose to pay VED annually, every six months, or in monthly instalments via Direct Debit.

Yes for those registered on or after 1 April 2025, it is an extra £425 on top of standard rate road tax from the second to the sixth year a car is registered on the road.

Yes, electric vans will now be charged £355 road tax each year which works out the same rate as petrol and diesel light goods vehicles.

Stay Informed and Plan Ahead

With these changes set to take effect in April 2025, now is the time to review your vehicle tax costs and plan accordingly. Whether you drive a traditional fuel car, hybrid, or EV, understanding the new VED rules will help you budget and stay compliant.

For more updates and expert advice please visit our latest news section daily

Road Tax Increase: What Drivers Need to Know for April 2025