Following the UK Court of Appeal judgment on Friday 25th October, we took the decision to pause new business from Monday 28th October while we worked to mitigate the legal implications to protect our dealers, brokers and customers.

We have now made the necessary adjustments to ensure the business can operate within the legal requirements set out in the judgment and are now open for new business in MotoNovo.

We do understand the pause to new business created challenges for you, and we thank you for your patience and support while we have been navigating the impact of the judgment. Dealer partners are encouraged to reach out to their account manager with any questions they may have during this time. Find out more here. 

Important update: We're back open for business

Interested in becoming a MotoNovo dealer? Get in touch today.

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Registered keepers for fully electric vehicles, or battery electric vehicles (BEVs), across the UK will receive a letter from the DVLA letting them know that as of  1st April 2025, they will need to pay Vehicle Excise Duty (VED) for the first time. Owners of hybrid cars, which typically are classed as low-emission cars, already pay the appropriate vehicle tax.

Currently, VED is free for BEVs, so the new 2025 rules will impact hundreds of thousands of BEV owners who have bought their cars in recent years. However, this is not the only change; an expensive car tax supplement will also be introduced for BEVs with a list price that exceeds £40,000.

Electric and low-emission cars registered on or after 1 April 2025: The registered keeper must pay the lowest first-year VED (which applies to vehicles with CO2 emissions of 1 to 50g/km). From the second tax payment onwards, these vehicles will pay the standard rate. This is £190 for 2024 but is subject to change for 2025.

Electric and low-emission cars registered between 1 April 2017 and 31 March 2025: The registered keeper will pay the standard rate. This is £190 for 2024 but is subject to change for 2025.

Electric and low-emission cars registered between 1 March 2001 and 31 March 2017: These vehicles will move to the first band with a VED value. This is £20 for 2024 but is subject to change for 2025.

Hybrid and alternatively fuelled vehicles (AFVs): The £10 annual discount for hybrid and AFVs will be removed, and the rate to be paid will depend on when the vehicle was first registered.

Electric vans: Most electric vans will move to the standard annual rate for light goods vehicles. Check the current rates for this vehicle.

Electric motorcycles: These will move to the annual rate for the smallest engine size. Check the current rates for this vehicle.

The DVLA will send the registered keeper a reminder before the time from which their BEV needs to be taxed. The VED can be paid online, by phone, or at a Post office.

Under the Expensive Car Supplement, cars that cost over £40,000 when new pay an additional £410 annually for five years, starting from the first VED payment made when the car is a year old. For BEVs, it means that in addition to the annual £190 outlined above, the vehicle keeper will pay another £410. (This figure is subject to change for 2025).

The net result is that the total road tax for any BEV costing over £40,000 is £600, paid yearly until the car is six years old. The £40,000 figure includes optional extras and is based on the manufacturer’s official list price of the car, not the purchase price actually paid by the customer. 

Get yourself up to date with the upcoming VED changes and what it means for owners of these vehicles. 

Upcoming changes to Electric Vehicle Excise Duty (VED) from 1 April 2025

The Government has dismissed reports of an imminent announcement on a pay-per-mile road pricing scheme, allaying driver and industry concerns.

A definitive statement issued by the Department for Transport over fears that a pay-per-mile car tax could be introduced makes the government’s position very clear;

“We have no plans to introduce road pricing. We are committed to supporting our automotive sector as we transition to electric vehicles in order to meet our legally binding climate targets.”

While some forms of road pricing schemes do exist in the UK, such as toll roads, charges to enter bridges and tunnels, and zonal charging schemes in low-emission areas, where drivers pay a fee to enter a specific area with a particular vehicle, there have been ongoing discussions about the merit of the broader use of road pricing on public roads. In its short statement, the Department for Transport has quashed such thinking.

While the specifics of a road pricing scheme have never been clarified, it had been suggested that such a scheme could have seen the current Vehicle Excise Duty (road fund licence) and fuel duty revenues rolled into one pay-as-you-drive fee. In essence, the people who used the road the most would pay the most, while a government paper from 2022 suggested that, in principle, road pricing would have two purposes:

Managing the costs of motoring, such as pollution, emissions and congestion.

The increasing number of EVs on UK roads will continue to see the value of tax revenues raised through the sale of petrol and diesel decline. The Office for Budget Responsibility (OBR) previously reported that the complete transition of all UK vehicles to battery power would “result in a revenue loss of 1.5 per cent of GDP (equivalent to £31 billion [€35.8] in today’s terms)”.

While battery electric vehicles will start to pay Vehicle Excise Duty starting in April of next year, this will not bridge the tax gap filled historically by petrol and diesel sales. Therefore, while not road pricing, other motorist tax-raising approaches may still need to emerge.

Take a look as we explore the latest developments of pay-per-mile road pricing.

The Government rules out pay-per-mile road pricing

The price of filling a car’s tank with fuel has started to fall from what have been eye-watering highs, while electricity prices are set to rise in October. A cost comparison between a battery electric vehicle (BEV) and a petrol equivalent seems useful for potential car buyers.

The prices of unleaded petrol and diesel at UK forecourts have been falling more quickly than at any other point in 2024, as RAC Fuel Watch analysis revealed on 23rd September.

As of 19th September, a litre of unleaded was being sold for 136.15p on average – down 5p since the start of September (141.26p) and almost 7p lower than a month previously (142.86p).

A recent What Car? Real-world assessment of BEV ranges provides a helpful guide to assessing BEV efficiencies and costs.

A home charger will see a BEV charged at 22.4p per kWh (the current electricity price cap) for anyone on a standard tariff. However, special overnight tariffs can be far cheaper; Octopus offers a rate of only 7p/kWh, although slightly higher than standard daytime charging can offset some of this gain.

According to What Car, drivers charging a Tesla Model 3 RWD exclusively at home, paying 22.4p per kWh, would spend roughly £508 on electricity every 10,000 miles. If all the charging was at a public supercharger, which can rise to 79p per kWh, the cost rockets to £1795. However, for anyone accessing the overnight 7p per charging rate, the cost would plummet to £167.

Based on a petrol-powered BMW 320i, which is a close premium equivalent to a Tesla Model 3. The BMW has a claimed 42.80 MPG, using Fleet News’ Car Cost Calculator, 10,000 miles at the prevailing average of £136.15 per litre petrol costs would see 10,000 miles cost £1439.43. Use motorway service stations, and this jumps to £1701.52

The average annual mileage in the UK is 7,567 miles, according to the Department for Transport website.

Based on an analysis of MOT test data, over half of the vehicles in Great Britain travel less than 100 miles per week, with under 5% of cars driven over 15,000 miles per year by car, or 41 miles per day.

Based upon this car usage insight, the average UK motorist will have minimal reason to use a motorway service station for petrol or diesel. A BEV driver, provided they have a home charger, and since most of today’s BEVs have a range exceeding 200 miles, should be able to complete most of their charging requirements at home. Whether opting for a dedicated overnight tariff is worth the higher daily tariff would be an individual decision. For this reason, we have not included it in the final result, but it will be very viable for some.

A Tesla Model 3 RWD exclusively at home paying 22.4p per kWh would spend roughly £508 on electricity every 10,000 miles. (This will rise a little in October when the cost cap increases)

The BMW 320i, travelling 10,000 miles at the prevailing average of £136.15 per litre petrol costs, would see 10,000 miles cost £1439.43.

Indeed, there are plenty of caveats to this, and individual drivers must assess their driving usage and access to a home charger, but having used recognised third-party data sources, the potential difference, based just on ‘fuel’, is significant.

With running costs being a key factor for many consumers, take a look as we dive into BEV v petrol. 

Car running costs: battery electric v petrol

Recognising excellence and championing the incredible work of women across the credit and financial services industry, we’re extremely proud to celebrate our 2024 Women in Credit Awards finalists. We’re committed to driving positive change across the industry and these awards provide a platform to encourage diversity, equity and inclusion even further.

Sharing the importance of empowering and supporting the inspirational work of women and allies, meet some of our very worthy finalists with a few words of inspiration for future women leaders… 



Joanne Elliot, Personal Assistant: Colleague of the Year

“Recognition plays a fundamental role in cultivating an inclusive, empowered environment where employees of all backgrounds can unleash their potential and thrive. My advice to other women would be don’t limit yourself. Many women limit themselves to what they think they can do. You can go as far as your mind lets you. What you believe, you can achieve.”

Emily Birkinshaw, Sales Development Partner: Advocate of the Year

“Initiatives such as this provide an opportunity to not only showcase female talent but to recognise those who continue to drive forward this agenda and lead the way in creating a more diverse and inclusive space for us all to thrive in. They’re a necessary catalyst to keeping this conversation alive and enabling others to be a part of positive change.”

Caroline Hudgell, Senior Business Development Consultant: Team Player of the Year

“I think it’s really important that everyone is on an even playing field. Diversity and Inclusion initiatives are key for creating more focus here. If the opportunities for all are equal, the right people will naturally progress. Don’t be intimated or feel you have anything to prove as a woman. Just to be yourself, and believe in your own abilities.”


Keep an eye on our social channels to see how they get on!

Catch up with our 2024 Women in Credit Awards finalists who have a few words of inspiration for future women leaders.

News - October 2024

Upcoming changes to Electric Vehicle Excise Duty (VED) from 1 April 2025

The Government rules out pay-per-mile road pricing

Car running costs: battery electric v petrol

Meet our 2024 Women in Credit Award finalists

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