The End of the Road for Free EV Tax: What Limited Companies Need to Know

March 7th, 2025

The era of free Vehicle Excise Duty (VED), or road tax, for electric vehicles (EVs) is ending. As of 1 April 2025, even those eco-friendly EVs will be subject to taxation. This change necessitates a strategic review for limited companies considering or already utilising EVs.  

What's Changing? (Based on DVLA Information)

From 1 April 2025, registered keepers of electric, zero, or low emission cars, vans, and motorcycles will pay vehicle tax like those with petrol and diesel vehicles. Here's a breakdown:  

Why Leasing Can Be a Smart Choice

Leasing remains a compelling option for limited companies due to:

What Does This Mean for Limited Companies?

The Silver Lining

Key Takeaways

By staying informed and adapting strategies, limited companies can effectively navigate these changes and continue to benefit from EVs.