Road tax letter

Major laws to be introduced in the next 12 months

The road to 2025 is already shaping up to be quite the ride, and there are some major changes coming to driving laws that could have a direct impact on you and your business. As a sole trader or business owner, staying up to date is the best thing you can do. From increased taxes on high-emission vehicles to new congestion charges for electric cars, these developments could influence how you manage your fleet and daily operations going forward. By being proactive and planning ahead, you can make sure that your business remains compliant and is well-prepared to navigate these changes if and when they arrive.

With that in mind, let’s dive into the four key driving laws that are set to roll out over the next year and explore what they could mean for your business.

Road tax increases for all vehicles

Starting in April 2025, the government is rolling out some significant changes to vehicle road tax that are definitely worth noting. Electric vehicles (EVs), which have been enjoying a cosy tax exemption up until now, will soon be required to pay both the standard and first-year rates. It’s a big shift, marking the end of their preferential treatment. As a result, if your fleet includes EVs, you’ll need to be prepared for higher operating costs.

Petrol and diesel cars aren’t getting off easy either. Many high-emission vehicles will see their first-year road tax rates double, making them far less appealing and financially feasible for many businesses. This shift is all part of the government’s commitment to reducing carbon emissions, but it certainly adds an extra layer of financial pressure for fleet operators.

Benefit in Kind rate increases

The upcoming rise in Benefit in Kind (BIK) rates is set to have a notable impact on employees who drive company cars, especially those involved in salary sacrifice schemes. Electric vehicles (EVs), which have grown in popularity thanks to their attractive low tax rates, will no longer serve as the tax-saving choice they once were. BIK rates will see an increase across the board, prompting many business owners to carefully evaluate the financial implications of providing company cars or implementing salary sacrifice options.

This change is particularly relevant for companies that want to offer their employees good transportation options. With BIK rates increasing, costs for both employees and employers who use electric vehicles will also go up. As a business, it can help to ensure you’re planning ahead for changes in commuting – it can help keep costs low and encourage your team to use sustainable transportation.

Congestion charges for EVs

Starting in December 2025, the congestion charge zone in London will expand, and electric vehicles (EVs) will no longer be exempt from the £15-per-day fee. Until now, EVs and hydrogen fuel cell vehicles enjoyed this exemption, but this update is part of a broader initiative aimed at reducing congestion and enhancing air quality within the city.

If you’re a London-based business or you do a lot of work in and around the capital, this change could impact operating costs and make EVs a less financially attractive option, at least for now. Now is the time to take this opportunity to reassess your fleet strategies and plan accordingly. Staying proactive helps you manage rising operational costs and stay environmentally friendly, all while ensuring you get the job done!

HGV-specific changes

If you’re in the trade business and rely on heavy goods vehicles (HGVs), it’s ready for some changes coming your way in May 2025. If you’re operating in London, you’ll be required to get new safety permits under the Progressive Safe System. These permits are all about making sure your vehicles meet stringent safety standards, so expect more compliance checks and possibly some added costs.

International HGV operators, on the other hand, will be required to upgrade their tachographs to comply with new regulations aimed at improving the accuracy of tracking drivers’ hours. While these changes may increase operational costs for businesses, there is some good news: the introduction of a simplified Certificate of Professional Competence (CPC) certification will help reduce some of these costs by making the training process quicker and less expensive. Every cloud has a silver lining!

At Van Discount, we understand how important it is to stay on top of these changes, especially when they can affect the way your business operates. If you’re looking for a new van or considering upgrading your fleet to stay compliant with the latest regulations, our team is ready to help with our cheap van deals! With over 20 years of experience, we’ll help you find the perfect van to suit your business needs – whether it’s for city driving, long-distance work, or anything in between.

Plus, you can take advantage of our amazing offers of up to 30% off the regular price on selected models! If you have any questions, just give us a call today on 01282 872 530. We’re always here to help!