Road Tax Changes 2026: Five Things Every UK Driver Should Check Right Now
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Road Tax Changes 2026: Five Things Every UK Driver Should Check Right Now

MotR EditorialPublished 15 May 20265 min read
MotR Editorial · UK automotive guidance
1 min read

Key Takeaways

  • EVs registered from April 2025 now pay the standard £195/year VED — the zero-tax era is over
  • The Expensive Car Supplement adds £425/year on cars listed over £40,000 new — for years 2 through 6
  • Missing a VED renewal exposes you to automatic DVLA camera detection and an £80 penalty (rising to £160)
  • Some drivers are still incorrectly paying petrol/diesel rates on vehicles that qualify for lower bands
  • SORN is available for vehicles not in use — you'll receive a refund on unused complete months

Vehicle Excise Duty is rarely in the news cycle for long — until you get a penalty notice in the post, or discover you've been paying the wrong rate for two years. The VED system changed significantly in 2017, again in 2025, and several more changes have been phased in between. These are the five checks every UK driver should carry out before their next renewal.

Check 1: Are You on the Right Rate for Your Registration?

  • Pre-March 2001: based on engine size. Under 1549cc = £200/year. Over 1549cc = £325/year
  • March 2001–March 2017: based on CO2 band. Sub-100g/km = £0/year. 100–120g/km = £20/year. Higher bands rise steeply
  • April 2017 onwards: first-year rate based on CO2, then flat £195/year from year two
  • EVs registered before April 2025: currently £0/year
  • EVs registered from April 2025: standard £195/year from registration

Check 2: Does the Expensive Car Supplement Apply to You?

If the original list price of your vehicle — when new — exceeded £40,000, you pay an additional £425/year on top of the standard rate for years 2 through 6. This applies based on the original list price, not what you paid for the car used.

  • Standard rate from year two: £195/year
  • With Expensive Car Supplement: £620/year (until end of 6th year from first registration)
  • Check the V5C for the original list price — or look it up from the manufacturer's archive
  • Many popular EVs, premium SUVs, and executive saloons fall above the £40,000 threshold

Check 3: Is Your Renewal Date Correctly Tracked?

  • Fixed penalty for driving without VED: £80 (reduced to £40 if paid within 33 days)
  • If unpaid: rises to £160, then potentially court action
  • Setting a renewal reminder 30 days early gives you time to pay, query errors, or SORN if needed
  • DVLA sends digital reminders if your vehicle is registered to your current address — but don't rely on it

MOTR Insight

MOTR Insight: Your vehicle's tax status and renewal date are pulled directly from DVLA in your MOTR profile. If the status shows 'Untaxed' when you've paid, contact DVLA immediately with your payment reference — DVLA database mismatches do occur, and the system can generate incorrect penalties before the error is resolved.

Check 4: Pre-2025 EVs — What Changes at Transfer

The zero-VED status for EVs registered before April 2025 runs with the registered keeper. When such a vehicle is sold and the new owner taxes it, they will pay the standard £195/year rate. This is a significant consideration in private sale negotiations that many sellers and buyers overlook.

Check 5: SORN is Available — Refunds Are Automatic

  • SORN the vehicle online at gov.uk — takes three minutes
  • Refund processed to the payment method on file — typically within 4–6 weeks
  • The vehicle must not be driven or parked on a public road while SORN'd
  • Re-taxing a SORN'd vehicle: simply tax it online before you want to use it again

Frequently Asked Questions

If the vehicle is kept on a public road, yes — it must be taxed regardless of whether it's driven. If it's kept on private land and not used on public roads, you can declare SORN and pay no VED.

Check the V5C logbook, the manufacturer's archived pricing, or a reputable car valuation service that records historical list prices. If the car was close to £40,000, establishing the precise figure before purchase is worth doing.

Yes. DVLA offers monthly Direct Debit, six-month, or annual payment. Monthly payments carry approximately 5% annualised surcharge compared to paying in full.

DVLA cameras will detect the lapsed tax within days. You'll receive an £80 fixed penalty notice. Pay promptly and renew — if you believe the penalty was issued in error, contact DVLA immediately with your payment reference.

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