Karmactive Staff
New regulations affecting UK motorists come into effect this month, bringing changes to number plates, company car rates, and electric vehicle taxation. These updates will impact both new car buyers and existing vehicle owners.
New ’25’ Number Plates Launch March 1
The DVLA introduces new ’25’ number plates for vehicles registered from March 1, 2025. This marks the first major number plate change since the ’24’ plates, with the next update (’75’ plates) scheduled for September.
Custom number plates remain subject to strict regulations. Vehicle owners displaying plates that suggest their car is newer than it actually is could face fines up to £1,000 and plate confiscation without compensation.
“This isn’t like ten years ago when you could jump into a new Corolla knowing it would feel similar to your old one,” says Rory Brimmer, Director of Turo UK. “With entirely new drivetrains, software systems, and even new manufacturers entering the market, drivers need to spend proper time with cars before making what is often their second biggest purchase.”
Company Car Advisory Fuel Rates Updated
HMRC has adjusted advisory fuel rates effective March 1, 2025. These rates determine reimbursement amounts for employees using company cars for business travel.
Diesel vehicles with engines up to 1,600cc will see rates increase from 11p to 12p per mile. Petrol vehicles between 1,401-2,000cc will rise from 14p to 15p per mile. Electric vehicle rates remain unchanged at 7p per mile.
Previous rates may still be used for up to one month from March 1, but only in specified circumstances.
Electric Vehicle Tax Changes From April 1
From April 1, 2025, electric vehicles will no longer be exempt from vehicle excise duty (VED). Electric cars registered between April 1, 2017, and March 31, 2025, will pay the standard £195 road tax rate – the same as petrol, diesel, and hybrid vehicles.
Newly registered electric vehicles will pay £10 in their first year, significantly less than combustion engine vehicles, but electric cars valued over £40,000 will also face the Expensive Car Supplement of £195.
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“Electric car drivers have long enjoyed free road tax, but that’s set to change,” explains Sam Sheehan, motoring editor at Cinch. “All they need to do is renew their road tax on the Government’s website before March 31, 2025, by putting in their car’s number plate and the 12-digit reference number on their V5C logbook.”
This deadline offers a potential one-year saving of £195 for electric vehicle owners who act before March 31.
Safety Camera Technology Trials Extended
A trial of new technology capable of detecting drivers not wearing seatbelts or using mobile phones while driving has been extended. Ten police forces are now participating, using vehicle-mounted cameras with multiple viewing angles.
The National Highways trial, which began in 2021, initially sent warning letters to non-compliant drivers. This research extension, in partnership with AECOM, started on February 19 and will run until March 2025, potentially informing a nationwide rollout.
Ukrainian Driving Licence Extension
The Ukraine driving licence scheme will be extended from March 3, 2025. Under these new rules, Ukrainian drivers can maintain their original licences for up to 54 months after becoming GB residents if they applied for permission to stay or entry clearance.
Government Boosts Electric Vehicle Funding
The government has launched a £120 million funding initiative to encourage businesses to switch to electric vehicles. The scheme offers grants up to £2,500 for small vans up to 2.5 tonnes and up to £5,000 for larger vans up to 4.25 tonnes.
These changes reflect the evolving landscape of UK motoring regulations, with particular focus on electric vehicle adoption, road safety, and standardized reimbursement rates for business travel.
FAQ
What changes are happening to UK number plates in March 2025?
New ’25’ number plates will be introduced for vehicles registered from March 1, 2025. These plates indicate the vehicle was registered on or after this date. Custom plates must follow strict rules, with fines up to £1,000 for non-compliance. The next update will be ’75’ plates in September 2025.
How will electric vehicle tax change in April 2025?
From April 1, 2025, electric vehicles will no longer be exempt from vehicle excise duty (VED). Electric cars registered between April 1, 2017, and March 31, 2025, will pay the standard £195 road tax rate. Newly registered electric vehicles will pay £10 in their first year, and electric vehicles worth over £40,000 will also pay the £195 Expensive Car Supplement.
What are the new advisory fuel rates for company cars?
From March 1, 2025, diesel vehicles with engines up to 1,600cc will see rates increase from 11p to 12p per mile. Petrol vehicles between 1,401-2,000cc will rise from 14p to 15p per mile. Electric vehicle rates remain unchanged at 7p per mile. Previous rates can still be used for up to one month after the change.
Is there a way to avoid paying the new electric vehicle tax?
Electric vehicle owners can save £195 by renewing their road tax before March 31, 2025. This allows them to take advantage of one more year of free road tax before the new rules take effect on April 1. To complete the renewal, drivers need their vehicle’s number plate and the 12-digit reference number from their V5C logbook.
What new safety technology is being tested on UK roads?
A trial of technology that can automatically detect drivers not wearing seatbelts or using mobile phones is being extended to ten police forces. The system uses vehicle-mounted cameras with multiple viewing angles. The trial began in 2021 and has been extended until March 2025, potentially leading to a nationwide rollout.
What funding is available for businesses switching to electric vehicles?
The UK government has launched a £120 million funding initiative to help businesses switch to electric vehicles. The scheme offers grants up to £2,500 for small vans up to 2.5 tonnes and up to £5,000 for larger vans up to 4.25 tonnes, making the transition to electric vehicles more affordable for businesses.
