Changes to Vehicle Excise Duty from April 2025

There’s change coming for VED, also known as Road Fund Licence, too. From April 2025, electric vehicles (EVs) will no longer be exempt from VED but they will still be a much more cost-effective choice compared to petrol and diesel cars. All changes have already been updated in our system and so the quote you see on our system includes this.

Here’s a quick refresh on VED:

What is VED?

VED (Vehicle Excise Duty) is an annual tax that drivers must pay to use their cars on UK roads. The amount depends on the car’s emissions, with lower-emission vehicles typically paying less.

How will EVs be taxed?

From April 2025, EVs will be taxed at the same standard rate as some petrol and diesel cars. However, this is still lower than what many high-emission car drivers will pay.

Is VED included in the Tusker scheme?

Yes. The great news is that if you drive a car with Tusker, your VED is covered within your gross monthly amount—so you don’t have to worry about unexpected tax bills. Your amount is fixed for the whole of your agreement, so we won’t be adding anything to your agreement for the VED.

Will EVs still be cheaper to run overall?

Absolutely. Even with the introduction of VED for EVs, they remain significantly cheaper to run than petrol or diesel cars. With no fuel costs, lower maintenance expenses, and reduced BIK tax, they continue to be the best financial and environmental option.