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AVOID The Car Tax Hikes With A Brand-New Car From Pulman!
Car tax can be confusing, we know. Plus, with the upcoming road tax hikes from the Government from April 2025, so your new car vehicle tax could be set for a steep increase. But don’t stress! As experts in the motor industry, the team at Pulman are here to explain the changes in rates for 2025/26 in a way that’s easy for our customers to understand.
Plus, we’ll tell you how to make big savings and AVOID these tax hikes, you don’t want to miss out on this crucial information!
Let’s begin with the basics, the official name for road tax is VED (Vehicle Excise Duty) you might hear road tax referred to as this but be rest assured they are one and the same.
Road tax fluctuates naturally with the current rates of inflation which is calculated and applied automatically at the start of every financial year. The last change was implemented on the 1st of April 2024 and this year is no different with the changes coming into effect from the 1st of April 2025.
However, this year there are larger changesaffecting all cars, with first year rates set to double for some traditionally popular models. So, here’s an unmissable guide to help you navigate the changes, and what you can do to avoid the increased charges if you have been thinking about buying a new car, whether EV (electric vehicle), plug-in hybrid, petrol or diesel.
Confirmed Changes to EV and Hybrid Vehicle Road Tax for 2025
From April 2025, Electric vehicles are no longer exempt from paying car tax. However, if your EV is registered after the tax change date (1st April 2025), you will only pay a first-year tax rate. This is to the value of £10 until we reach 2029. It’s important to note that if you own or are planning to own an EV that costs more than £40,000, you will also have to pay the ‘Luxury Car Tax’, its formal name is ‘Expensive Car Supplement’. This will come to a total of £425 per year under the new tax scheme.
Older EV’s are subject to a different rate. If your EV was registered between the 1st of April 2017 and the 31st of March 2025, you will pay the same amount as all other road users which is £195 per year.
With us so far? Let’s move on to plug-in hybrid, petrol and diesel vehicles or ‘ICE’ models.
Confirmed Changes to Hybrid and Petrol and Diesel Vehicle Road Tax for 2025
The easiest way to understand this section is to know that the lower the emissions your car emits, the lower your payable road tax amount will be. For reference, this band includes cars that emit between 1 and 50 grams per kilometre (g/km) of CO2, and they can be hybrid, petrol or diesel.
The first-year tax bill for all these vehicles will rise to £110. Under the current tax scheme low emissions hybrid vehicles are free from road tax while petrol and diesel models pay £10 per year.
New cars will also receive a payment increase. This time the category includes vehicles that emit 51-75g/km of CO2 will see a road tax increase from the current £30 for ICE models and £20 for hybrid models to £135 per year.
We know this information is complicated and difficult to digest, so we want to remind you we have experts stationed at each of our North East showrooms that are there to help you understand this information.
Other Road Tax Increases – Road Tax Banding System
The increases mentioned above are just a few of them and it’s important to know that almost every road user is subject to tax rises this year. To help you find out what your new car tax price will be, the government has a handy table detailing what your first-year car tax payments will be as well as your subsequent second-year rate which is ongoing.
You can find this handy guide here – (https://www.gov.uk/vehicle-tax-rate-tables)
To see a comparison of the previous tax bands to the new rates, see our table below.
VED tax bands cars registered on or after 1 April 2017
| Band blah blah blah blah | CO2 Emissions blah blah blah blah | First Year Tax Rates 2024-2025 blah blah blah blah | First Year Tax Rates 2025-26 blah blah blah | Standard Tax Rates 2024-25 blah blah blah blah | Standard Tax Rates 2025-26 blah blah blah blah |
| A | 0g/km | £0 | £10 | £190 | £195 |
| B | 1 to 50g/km | £10 | £110 | £190 | £195 |
| C | 51 to 75g/km | £30 | £130 | £190 | £195 |
| D | 76 to 90g/km | £135 | £270 | £190 | £195 |
| E | 91 to 100g/km | £175 | £350 | £190 | £195 |
| F | 101 to 110g/km | £195 | £390 | £190 | £195 |
| G | 111 to 131g/km | £220 | £440 | £190 | £195 |
| H | 131 to 150g/km | £270 | £540 | £190 | £195 |
| I | 151 to 170g/km | £680 | £1,360 | £190 | £195 |
| J | 171 to 190g/km | £1,095 | £2,190 | £190 | £195 |
| K | 191 to 225g/km | £1,650 | £3,300 | £190 | £195 |
| L | 226 to 255g/km | £2,340 | £4,680 | £190 | £195 |
| M | Over 255g/km | £2,745 | £5,490 | £190 | £195 |
Electric cars will cost £10 in first-year VED from 1st of April 2025
How To AVOID The Road Tax Hikes before 31st March 2025!
We promised information on avoiding the new road tax hikes so here is your method!
If you buy a new car before the 31st of March 2025 and it’s also registered before this date, you will avoid the tax increase on the 1st of April 2025. If you’ve been considering purchasing a new car or you’re almost to a decision and you just need something to seal the deal, this is your reason!
Here at Pulman Group, we have over 200 new cars in stock across our North East showrooms that are ready to be sold and registered before the 31st of March. We can help with any SEAT, Škoda, CUPRA or Volkswagen model and we stock all types of cars from hatchback to SUV, saloon and coupé as well as petrol, diesel, automatic, manual hybrid and electric. There’s so much choice at Pulman Group!
View our available new models in stock here
We have expert Pulman People on hand to help you find your ideal car and answer any questions you might have about the incoming tax rise so please get in touch if you have any questions.
Contact us through our online enquiries form here
Or call your closest showroom:
Pulman Volkswagen Durham – 0191 336 0030
Pulman SEAT/CUPRA Sunderland – 0191 336 0030
Pulman Škoda Sunderland – 0191 336 0030
Pulman Škoda Durham – 0191 336 0030
Pulman Škoda Cramlington – 0191 336 0030
Pulman Volkswagen Sunderland – 0191 336 0030
