As of March 2025, the Driver and Vehicle Licensing Agency (DVLA) has introduced several major changes affecting UK motorists. These updates impact vehicle tax, number plate regulations, and data-sharing policies, meaning drivers need to stay informed to avoid fines and penalties.
Here’s a breakdown of the new DVLA rules, what they mean for drivers, and how they could affect your driving experience in the UK.
Vehicle Tax (VED) Increases – Higher Costs for Many Drivers
Car Tax Rises for High-Emission Vehicles
From April 1, 2025, Vehicle Excise Duty (VED) will increase significantly, particularly for high-emission cars. Drivers of new petrol and diesel vehicles with CO₂ emissions over 255g/km will see their first-year tax jump to £5,490 (previously £2,745).
Additionally, the expensive car tax supplement for vehicles worth over £40,000 will rise from £410 to £425 per year, affecting thousands of motorists.
Impact: Owners of SUVs and high-performance vehicles will be hit hardest, potentially paying hundreds more per year in road tax.
Electric Vehicles (EVs) Lose Their Tax Exemption
For years, electric vehicle (EV) owners have enjoyed zero road tax, but this is now changing.
From April 2025, all EVs will be taxed at £10 in their first year and £190 annually thereafter.
If your EV costs over £40,000, you’ll also pay the £425 annual supplement (previously only applied to petrol and diesel cars).
New '25' Number Plates & Stricter Rules
From March 1, 2025, the new ‘25’ registration plates have been introduced for vehicles registered this year.
Rules for Number Plates:
- Drivers cannot display a plate that makes their car appear newer than it is.
- Illegal plates (such as those mimicking a newer car or containing offensive wording) can lead to a £1,000 fine and an MOT failure.
- The DVLA has banned over 250 '25' plates for being offensive or misleading.
New Fuel Rates for Company Cars
Drivers using company cars should note the updated fuel reimbursement rates as of March 1, 2025:
- Diesel cars (up to 1,600cc): Now 12p per mile (up from 11p).
- Petrol cars (1,401-2,000cc): Now 15p per mile (up from 14p).
- Electric vehicles: Rate remains 7p per mile.
New Data-Sharing Laws – Concerns Over Privacy
A proposed new law could allow the DVLA to share UK drivers' personal data with police and other government agencies.
What information could be shared?
- Name
- Address
- Date of Birth
- Driving History
- Photographs
Privacy Concerns:
Critics argue that this could lead to facial recognition technology misuse and increased surveillance.
What Do These Changes Mean for UK Drivers?
Key Takeaways:
Road tax is increasing, especially for high-emission and luxury cars.
EVs will no longer be tax-exempt starting in April 2025.
New '25' number plates are now available, but illegal plates could result in fines.
Fuel reimbursement rates have changed, affecting company car drivers.
The DVLA may soon share personal data with law enforcement, raising privacy concerns.
What Should You Do?
- Check your car tax category to avoid unexpected costs.
- Ensure your number plate complies with new rules.
- If using a company car, update mileage reimbursement records.
- Stay informed about potential data-sharing laws.
By staying up to date with these new DVLA regulations, drivers can avoid fines, stay compliant, and plan ahead for increased costs.