Motorists across the UK are being informed about three key changes to DVLA regulations—two of which have already taken effect. These updates, introduced by the DVLA and HMRC, could impact fuel reimbursement rates, vehicle tax, and registration plates. Experts are advising drivers to stay aware of these changes to avoid potential fines or increased costs.

Recent DVLA and HMRC Updates Affecting Drivers

Revised Advisory Fuel Rates

As of March 1, HMRC has updated its Advisory Fuel Rates (AFRs), which determine the reimbursement amounts employees receive for business travel in company cars.

• Diesel vehicles up to 1,600cc: Increased from 11p per mile to 12p per mile
• Petrol cars (1,401-2,000cc): Increased from 14p per mile to 15p per mile
• Electric vehicles remain unchanged at 7p per mile

While these adjustments may seem minor, they can add up significantly for those who frequently use company vehicles.

A spokesperson from BigWantsYourCar.com noted: "The rise in fuel reimbursement rates will increase the overall cost of operating a company car. Even small per-mile increases can significantly impact businesses and employees covering long distances. This may be a good time for drivers to evaluate whether their current vehicle remains the most economical option."

New ‘25’ Registration Plates

From March 1, newly registered vehicles in the UK have started receiving ‘25’ number plates, marking their registration year. Drivers planning to purchase a personalised plate must ensure it complies with strict DVLA regulations.

Failure to adhere to these rules—including proper formatting, font style, and color—can result in fines of up to £1,000. Additionally, registration plates cannot falsely suggest that a vehicle is newer than it actually is.

According to a spokesperson from BigWantsYourCar.com: "New registration plates typically signal an active period in the car market, as many motorists look to trade in their old vehicles. This leads to an increase in available used cars, making March an excellent time for those considering selling. However, it's essential that any personalised plate fully complies with DVLA guidelines to avoid penalties."

New Tax Charges for Electric Vehicles

From April 1, electric vehicle (EV) owners will face Vehicle Excise Duty (VED) charges for the first time.

• EVs registered after April 1, 2025, will be required to pay a £10 tax in the first year.
• EVs valued at over £40,000 will be subject to the Expensive Car Supplement, adding £195 per year from 2025.

This new taxation policy may reduce the financial advantages of owning an electric vehicle, prompting some owners to reconsider their options.

A spokesperson commented: "Many EV owners may not have anticipated these tax changes. While the initial charge is relatively small, the added cost for high-value EVs could influence purchasing decisions. With the demand for used cars still strong, those with premium EVs might want to consider selling sooner rather than later to avoid these upcoming costs."

How Drivers Can Respond to These Changes

Experts advise that staying informed is key to avoiding unnecessary expenses.

The spokesperson from BigWantsYourCar.com added: "With these new DVLA rules coming into effect, drivers must remain aware of changes to tax, fuel costs, and number plate regulations. Adapting to these updates is essential to avoid unexpected financial burdens. For those considering switching vehicles, selling their current car, or upgrading to a more cost-efficient option, now may be the perfect time to explore their choices."