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01 March 2025

New DVLA And HMRC Rules Set To Impact UK Drivers

Changes include fuel rates, vehicle taxes, and number plates starting March 1, 2025.

Motorists across the UK are being warned of multiple impending changes to driving rules set to take effect from March 1, 2025. These updates, introduced by HMRC and the DVLA, could lead to increased costs and potential fines for non-compliance. With recent shifts toward stricter emissions controls and new speed limits, drivers need to be aware of the latest regulations.

The HMRC has announced new Advisory Fuel Rates effective from March 1, which will significantly alter the rates for company car reimbursements. Notably, the rate for diesel cars with engines up to 1,600cc will rise from 11 pence per mile to 12 pence per mile (ppm). For petrol cars with engines sized between 1,401-2,000cc, the rate will increase from 14 ppm to 15 ppm. Meanwhile, electric vehicle drivers can breathe easy, as their rate remains at just 7 ppm, reflecting continued incentives for environmentally friendly transport.

This year also witnesses the rollout of the '25' number plates for newly-registered vehicles, indicating they were registered on or after March 1, 2025. For motorists considering custom number plates, strict regulations are now enforced. Failure to comply with these guidelines could result in hefty fines of up to £1,000 and confiscation of the plates. It's illegal to display plates on vehicles which suggest they are newer than they actually are. Specific rules govern the shape, font, color, and visibility of number plates on UK roads. To assist, the DVLA offers its own personalised plate finder to help drivers avoid infractions.

New plates are released biannually, occurring each March and September. For this year, the new plates will feature '75' as the third and fourth characters. These regulations work alongside changes affecting electric vehicle taxes, which will prompt new vehicle excise duty requirements starting April 1, 2025. Currently, the annual duty stands around £190 for most cars. Under new rules, all new electric vehicles registered post-April 1 will have to pay £10 for the first year — ending the previous exemption.

Come 2026, standard annual rates will apply, potentially increasing again. Specific to electric vehicles with values over £40,000, the Expensive Car Supplement will add another layer of financial responsibility, amounting to £195. Hence, it’s time for current and prospective drivers to familiarize themselves with the new taxes associated with electric vehicle ownership.

On another front, innovative technology utilizing artificial intelligence to enforce driving regulations is nearing deployment across the UK. The system, trialed by ten police forces since 2021, is effective at capturing footage of offenses like speeding and lack of seatbelt usage. This trial, which began its next phase earlier this year, aims at integrating AI capabilities for safer road usage.

Offenders caught through this technology could face severe penalties: fines as high as £500 for not wearing seatbelts, and £1,000 for mobile phone use behind the wheel. With the growing reliance on technology for safety on the roads, these penalties signify stricter law enforcement.

Overall, as March approaches, the driving public must adapt to these imminent changes to avoid unexpected expenses and fines. While the environment benefits from the push for electric vehicles, it’s equally important for motorists to stay informed on regulations, rebates, and potential costs associated with their vehicles.