Overview
- Company car Benefit-in-Kind rates, which changed Monday, lift pure EVs from 3% to 4% and keep the highest-emitting models at 37%, raising monthly costs for many drivers.
- First-year “showroom” tax for new petrol and diesel cars has increased, with the most polluting models now charged £5,690, and 45 model trims identified as falling into this top band.
- Annual VED bands from April 1 set a £200 standard rate for most petrol, diesel and hybrid cars registered after 2017, while some pre‑2001 vehicles with larger engines now face £375 a year.
- The Treasury has confirmed a mileage tax for electric and plug‑in hybrids from April 2028 at 3p or 1.5p per mile, meaning an EV driven 10,000 miles would owe about £300 on top of VED.
- Industry data show older, low-value cars in high VED bands are being scrapped more often, and experts warn the rising bills could slow EV uptake and squeeze household budgets.