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Comprehensive Guide to New UK Driving Laws in 2025: What You Need to Know

Car Tax Changes 'New UK Driving Laws in 2025
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Car Tax Changes ‘Modifications regarding taxation, the vehicle duty of fuel, EVs, and the heavy good vehicles will affect the rules regarding driving for UK by 2025. If one needs their cars as an efficient means to carry themselves and material around both professionally and privately, these upgrades come in extremely useful. This paper outlines six fundamental changes made in the driving laws of UK as of 2025 alongside their implications in greater detail.

1. Suspend Greater Fuel Duty Since March 2026

The government announced that until March 2026, the 52.95 pence per liter petrol tax rate that it currently imposes would remain frozen. This since 2011 system prevents petrol prices from increasing with inflation.

Important highlights

This is the fifth consecutive year for which the 5p reduction implemented at Autumn Budget has been extended for another year.
The Gasoline Finder Scheme will be in place to ensure transparency in petrol prices by 2025. Petrol pumps would be liable to update people about the shortage updates and changing petrol prices within thirty minutes.

Impact for businesses

Balanced price will benefit fleet managers and businesses that depend on fuel driven vehicles the most. However to maintain cost sensitivity, monitoring timely price fluctuations with the help of the Fuel Finder Scheme may emerge as extremely significant.

2. Road tax per vehicle will rise for all cars

Vehicle Excise Duty, or road tax, will be increased for all types of cars from April 2025.

Major Changes

£10 is expected to be added to the standard rate of road tax, thus increasing it to £165 per year.
Older diesel and petrol cars emitting more than 76g/km of CO2 will have their first-year tax rate doubled, significantly increasing the cost of owning.
EVs will no longer be exempt from paying road tax. Newly purchased EVs will face a £10 first-year tax from April 2025.
The £410 yearly Expensive Car Supplement for EVs priced above £40,000.

Conventions for Companies

Companies planning to transition to electric vehicles should take a closer look at their budgets, especially if they wish to purchase premium models. Organisations with aging fleet of vehicles may also incur more on the running costs.

3. Rising benefit in kind (BIK) rates

Beginning in April 2025, benefit in kind rates climb by 1% annually across all tax levels. Higher emissions cars go under higher rates; the present rates span from 21% to 37%.

Specific Changes

Specifically, EVs—which now have a low BIK rate of 2%—will experience an annual rise by 1% through 2028.
Most kinds of taxable benefits will need real-time BIK reporting via PAYE beginning 2026.

Impact to Businesses

The ones offering company cars as fringe benefits or even as part of pay-off programs should prepare to pay more for these. More taxes would be owed by workers who receive them also.

4. New regulations of HGV

Businesses making use of HGVs must face the implementation of several measures that are purported to enhance compliance and safety of the vehicles

Key Changes

All HGVs entering into Greater London from May 4, 2025, will be required to attain a Transport for London (TFL) safety certificate. One shall adhere strictly to the Progressive Safe System.
Vehicles used within overseas HGV operations will need to be equipped with enhanced tachographs that comply with the regulations in place.

Implications for Businesses

Companies operating across or within the borders of London will need to ensure timely adherence to safety and paperwork regulations and budget money for equipment upgrades.

5. Rise of Autonomous Cars

The Automated Vehicles Act 2024 has provided a platform to integrate autonomous cars into the transport infrastructure of the United Kingdom. Though these vehicles are not so common today, the legislations provide a framework for operation, liability, and safety.

Potential Impact

Self-driving cars can revolutionize supply chains and logistics by increasing efficiency, reducing operational costs in the long term, and hence decreasing accidents.

Considerations for Businesses

Businesses should watch for advancements in autonomous vehicle technology and assess when such technology will be feasible for use in delivery and logistics.

6. Electric Vehicles’ Congestion Charges

Electric cars and hydrogen fuel cell vehicles will be subject to London’s Congestion Charge from December 2025. Every vehicle entering the Congestion Charge zone will pay the daily standard cost of £15.

Implications for Businesses

Companies relying on EVs to avoid congestion charges will need to change their financial plans to accommodate this additional cost. Companies in central London should consider best routes or alternative delivery systems to save costs.

What do you think?

Written by Zane Michalle

Zane is a Viral Content Creator at UK Journal. She was previously working for Net worth and was a photojournalist at Mee Miya Productions.

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