In the Spring Statement, Chancellor Rachel Reeves introduced some major updates to UK road tax (VED). While these changes might sound like typical government tweaks, they carry real implications for businesses running fleets, especially those still relying on petrol and diesel vehicles.
At EZOO, we know how vital it is to keep fleet costs predictable and manageable. So let’s break down what’s changed, what it means, and how to stay ahead.
What Changed in April 2025?
From 1 April 2025, road tax rules have shifted. Here’s the key info:
First-year VED for new cars will now vary based on CO2 emissions:
Over 91g/km CO2: £390
Over 255g/km CO2: £5,490
Battery electric vehicles (BEVs): Just £10
Ongoing annual VED will be a flat rate of £195 for all vehicles after year one, including EVs.
The impact? Choosing a high-emission diesel vehicle over a BEV could cost your business an extra £5,400 in tax alone over a standard three-year lease.
Why This Could Be the Final Push Towards EVs
These tax increases signal a clear direction from the government: ICE (internal combustion engine) vehicles are on the way out.
Even hybrids, which aren’t due to be phased out until 2035, will now fall under the higher tax threshold if they emit over 91g/km CO2. For fleet managers, that makes BEVs not just the greener option, but the smarter financial one too.
But What About Range Anxiety and Charging?
Good news – the electric vehicle market has moved fast.
Average EV range: 300+ miles
Long-range EVs: 450+ miles per charge
UK charging infrastructure: 76,840 chargers across 38,737 locations (EZOO customers get 10% off at 50,000 chargers in the UK thanks to our partnership with OVO)
Yes, upfront costs can be higher, but with most vehicles financed over 2–4 years, the monthly difference is shrinking fast – especially when you factor in fuel savings, lower maintenance, and the tax perks of going electric.
A Smarter Way to Electrify Your Fleet
At EZOO, we offer flexible electric car business subscriptions that remove the complexity of traditional fleet management.
✅ One monthly payment – no hidden costs
✅ Full servicing, maintenance, tyres and insurance included
✅ No upfront purchase or long-term commitment
✅ Return or swap vehicles as your needs change
Whether you’re trialling electric cars in your fleet or looking to switch completely, our business subscriptions make it easy, efficient and cost-effective.
These road tax changes aren’t just admin. They’re a real cost driver that could catch businesses off guard. Now’s the time to review your fleet strategy, rethink vehicle choices, and lean into electrification before the tax bills hit.
Want to explore how an electric car business subscription could work for your team? Get in touch.