UK drivers should prepare for a series of changes taking effect this week, which could impact motoring costs and regulations. From 1 March, several new rules will come into force, including
updated fuel rates, new vehicle registration plates, and upcoming tax changes for electric vehicles.
Changes to advisory fuel rates
One of the key updates involves new Advisory Fuel Rates set by HMRC, which will come into effect on Saturday, 1 March. These rates, updated quarterly, determine reimbursement levels for employees using company cars for business travel.
Under the new rates:
- Diesel vehicles with engines up to 1,600cc will see an increase from 11 pence per mile (ppm) to 12ppm.
- Petrol cars with engine sizes between 1,401cc and 2,000cc will see rates rise from 14ppm to 15ppm.
- Electric vehicles will remain at 7ppm, keeping costs lower for EV drivers.
While the updated rates are effective from 1 March, businesses and employees can continue using the previous rates for up to a month.
New 2025 number plates introduced
On the same day, the new ‘25’ registration plates will be launched for all newly registered cars, indicating they were registered on or after 1 March 2025.
Drivers should be aware that failing to comply with number plate regulations could result in a £1,000 fine and even confiscation of the plate. Key rules to remember include:
A number plate must not make a car appear newer than it actually is.
For example, a car first registered on 2 March 2015 can have a plate with ‘15’ as its third and fourth characters—but not ‘16’, ‘17’, or beyond.
New number plates are issued twice a year—in March and September. The September plates in 2025 will have ‘75’ as their identifying characters.
There are strict rules regarding the font, shape, color, and visibility of plates, and drivers should check DVLA guidelines to avoid penalties.
New road tax for electric vehicles (from April)
From 1 April, electric vehicle (EV) owners will see the introduction of a new car tax system, bringing EVs in line with other vehicle types for Vehicle Excise Duty (VED). Key details include:
Newly registered EVs will pay £10 in the first year.
Standard annual tax rates for petrol and diesel vehicles remain significantly higher—£190 for cars, £335 for vans, and £25 for motorcycles.
High-value electric cars (worth over £40,000) will also be required to pay the Expensive Car Supplement from 2025, amounting to £195 annually.
DVLA cracking down on rule breakers
Keeping up with these changes is crucial to avoid fines and penalties. Reports indicate that the DVLA has revoked around 140,000 driving licenses, with some regions more affected than others.
By staying informed and following the latest regulations, drivers can ensure safe and cost-effective motoring in 2024 and beyond. Photo by Zweifel, Wikimedia commons.