As of April 2025, the UK will have a new set of rules governing the use of mobile phones while driving.

The Impact on Electric Vehicle Drivers

The introduction of VED for electric vehicles (EVs) is a significant change for drivers who have previously been exempt from paying the tax. This new requirement will affect new and existing EV owners, who will need to pay the lowest first-year rate of VED, which is currently £10 a year. • The change will apply to all new EVs registered on or after April 1, regardless of their age or type.

This change will affect companies with three or more employees, as those with two or fewer employees are exempt from BIK tax. BIK tax is a type of tax that companies pay on employee benefits provided by the employer, such as company cars, fuel cards, and on-site childcare facilities. The previous freeze on BIK rates was put in place to help businesses cope with the rising costs of running a business during the pandemic. However, now that the pandemic is under control, the government has decided to reintroduce the increases to the BIK rates. The 1 per cent increase in BIK rates will be applied across all three tax brackets. This means that companies will need to pay more in BIK tax on all benefits provided to their employees, regardless of the type or value of the benefit. The increase will be phased in over a period of two years, with the first year seeing a 1 per cent increase and the second year seeing a further 1 per cent increase. The change will have a significant impact on companies with three or more employees, as they will need to absorb the additional BIK tax costs. Companies that are exempt from BIK tax, such as those with two or fewer employees, will not be affected by the increase in BIK rates. It is essential for companies to review their employee benefits and ensure that they are complying with the new BIK tax rates. This includes reviewing the value of each benefit and calculating the BIK tax due, as well as ensuring that the correct tax brackets are applied.

The standard rate applies to all cars registered after April 2017, including those with a zero-emission rating.

Further details on this topic will be provided shortly.

However, from April 2025, this rate will increase to £210.The Impact of the Car Tax Increase on Motorists

The car tax increase will affect all vehicles registered after April 2017, regardless of their age or condition. This means that drivers of cars, vans, and motorcycles will need to pay the higher rate of £210 per year. • The increase is part of a broader effort to raise revenue for the government to fund various public services and infrastructure projects.

The Controversy Surrounding DCAs

The Financial Conduct Authority (FCA) has launched an investigation into car finance deals that contained so-called discretionary commission arrangements (DCA). DCAs allowed car dealers to adjust the interest offered to customers, to increase their commission.

The Hidden Costs of Car Finance

The world of car finance is often shrouded in mystery, with many consumers unaware of the hidden costs that can add up quickly.