April 1st is no joke for UK motorists.

Every year, the new financial year brings updated Vehicle Excise Duty (VED) rates — and 2026 is no different. But this year there are a few changes worth paying close attention to, particularly if you drive an electric vehicle or a higher-value car.

Whether you’re renewing your tax this month or buying a new car, here’s a clear, no-nonsense breakdown of exactly what’s changed, what you’ll pay, and what to watch out for.

What Is Vehicle Excise Duty (VED)?

VED — commonly called road tax or car tax — is the annual charge paid to the DVLA to keep your vehicle legally on UK roads. The amount you pay depends on your car’s age, fuel type, CO2 emissions, and list price.

It’s automatically flagged to enforcement cameras nationwide, so unlike some motoring rules, this one is very hard to dodge.

1. The Standard Rate Has Increased (Petrol, Diesel & Hybrid)

If your car was registered after April 1st 2017, you pay a flat annual standard rate after the first year.

What’s changed: The standard VED rate has risen from £195 to approximately £200 per year from April 2026, in line with the government’s inflation-linked adjustments.

A £5 increase won’t break the bank — but combined with rising insurance premiums, fuel costs, and general motoring expenses, every pound adds up. It’s worth budgeting for.

Older cars (pre-April 2017) are still taxed based on CO2 emissions bands. These bands have also seen proportional increases, so check the DVLA’s official rate tables if your car falls into this category.

2. Electric Vehicles Are Now Paying Road Tax

If you bought an EV between 2001 and early 2025, you enjoyed zero road tax. That era is now firmly over.

From April 2025, electric vehicles were brought into the standard VED system for the first time. Here’s how it works going into 2026:

• Year one (first registration): A reduced first-year rate applies
• Year two onwards: EVs pay the same standard rate as petrol and diesel cars — currently ~£200/year

The reasoning from the government is straightforward: as EV uptake grows, the road tax exemption created a widening funding gap for road maintenance. The free ride had to end eventually.

If you’re an EV driver renewing for the first time, this is likely the year it hits your inbox.

3. Good News: The Expensive Car Supplement Threshold Has Been Raised for EVs

Here’s one change that works in drivers’ favour.

Any car with an original list price above £40,000 has historically attracted an “Expensive Car Supplement” — an additional £425 per year charged for five years after registration. The problem? Most mid-range electric family cars have always sat just above that threshold, making it a stealth tax on average EV buyers rather than genuine luxury vehicle owners.

What’s changed from April 2026: The Expensive Car Supplement threshold for zero-emission vehicles has been raised from £40,000 to £50,000.

What this means in practice: If you purchased an EV with a list price between £40,000 and £50,000, you will no longer be hit with the £425 annual surcharge. For a car owned over the five-year supplement period, that’s a saving of up to £2,125.

It’s a meaningful concession, and one many EV owners have been lobbying for.

4. Company Car Drivers: BiK Rate Edges Up

If you drive an electric company car, your Benefit in Kind (BiK) tax rate is increasing slightly.

For the 2026/27 tax year, the BiK rate for electric vehicles moves from 3% to 4%. In real terms, this is still dramatically cheaper than running a petrol or diesel company car — but it’s worth factoring into your take-home pay calculations, particularly if you’re in a higher income tax bracket.

For context: a petrol company car typically attracts BiK rates of 25–37%, so the EV advantage remains substantial.

Don’t Let an Avoidable Fine Make April Even More Expensive

With road tax, insurance, and fuel all ticking upwards, the last thing any driver needs is a penalty that could easily have been avoided.

Here’s one that catches people out more than you’d think: your number plate.

Under UK law, driving with a number plate that is cracked, faded, delaminating, or incorrectly spaced is an offence. The fixed penalty is £100, and a non-compliant plate will cause an instant MOT failure — meaning you may not even realise you’re driving illegally until it’s too late.

After winter, a lot of plates start to show their age. Peeling edges, UV-yellowed acrylic, or cheap “show plates” that were never road-legal to begin with are all common culprits.

The fix is simple — and cheaper than the fine.

At Easy Number Plates, all plates are manufactured to the current BS AU 145e standard, the UK legal requirement for road use. You get full compliance without the hassle.

• 4D Laser Cut Plates — raised lettering, bold modern finish, fully road legal
• 3D Gel Plates — high-gloss resin domed letters, premium look at an everyday price

Order before 2pm and your plates are dispatched the same day.

Browse Legal, Road-Ready Plates at Easy Number Plates

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