Upcoming Road Tax Changes for Electric and Low-Emission Vehicles from April 2025
Starting from 1 April 2025, all
electric and low-emission vehicle owners will be required to pay road tax, also
known as Vehicle Excise Duty (VED), for the first time. This new regulation,
introduced by the UK government, will apply to all drivers, including private
hire drivers using fully electric vehicles.
At Capital Hire Management Ltd,
we understand that this change may be disappointing for EV hirers, as the road
tax exemption has been a significant financial incentive for switching to
electric.
While this decision is beyond our
control, we remain committed to supporting private hire drivers by ensuring
that electric vehicles remain an affordable and practical choice for their
business needs.
What Are the Changes to EV
Road Tax in 2025?
Currently, fully electric
vehicles are exempt from road tax. However, from 1 April 2025, this
exemption will end, affecting both new and existing zero or low-emission
vehicles.
Key points for private hire
drivers:
- Standard EV Road Tax Rate: If your electric vehicle
was registered between 1 April 2017 and 31 March 2025, you will need to
pay the standard rate of £195 per year, which is the lowest tax band.
- First-Year VED: Any new electric vehicles
registered from 1 April 2025 will pay a reduced first-year rate of £10
before moving to the standard rate of £195 from the second year onwards.
- Luxury Car Supplement: EVs with a retail price of
£40,000 or more will be subject to an additional annual charge of £410 for
five years, aligning them with other non-electric vehicles in the same
price category.
- Plug-in Hybrids: Hybrid vehicles will no longer
receive a tax discount. Any hybrid cars registered after 1 April 2017 will
also be subject to the standard annual road tax rate of £195.
For comprehensive information,
check the official UK government website: Vehicle tax for electric, zero or low emission vehicles
How Capital Hire Management
Ltd Supports Private Hire Drivers
We acknowledge that this change
introduces an added financial responsibility for drivers and hirer companies.
To simplify this transition, we are ensuring that our drivers experience
minimal inconvenience.
When you rent an electric vehicle
through Capital Hire
Management Ltd for PCO Car
Hire—the standard road tax charge of £195 and the £410 luxury car
supplement (if applicable) will be incorporated into your weekly payments for
all new zero-emission vehicles registered from 1 April 2025.
This ensures that drivers won’t
face unexpected costs, allowing for predictable expenses and peace of mind.
Why EVs Remain a
Cost-Effective Choice for Private Hire Drivers
Despite the introduction of road
tax for electric vehicles, they remain a more economical option compared to
petrol, diesel, or hybrid alternatives.
Switching to an EV still offers
significant savings due to:
- Lower fuel costs compared to petrol and diesel
- Reduced maintenance expenses due to fewer
mechanical components
- Environmental benefits and compliance with clean
air regulations
By driving an electric vehicle,
private hire drivers can maximize their earnings while enjoying a smoother and
more efficient driving experience on UK roads.
Now is the perfect time to make
the switch to electric—reduce costs, increase savings, and drive a cleaner,
more sustainable vehicle.
About Capital Hire management
Capital Hire Management Ltd. is
London's best PCO car rental company, which provides top-notch vehicles and
exceptional services to professional drivers like you! If you are looking for
affordable car hire for PCO car rental please visit our website https://www.capitalhiremanagement.co.uk/
to explore our latest fleet.
our excellence is validated by
driver ratings on Trustpilot.
we offer access to new or recent model cars along with comprehensive training
and support to enhance your profitability, safety, and overall satisfaction as
an Uber driver.
Visit our London Hub located at 56 High
Street Wealdstone Harrow HA3 7AF, London, reach out via email to us, or give us a
call at 0208426005 to get started.
