6 commercial vehicle tax changes in 2025

If you use lorries or vans to transport goods or provide your services, there are a number of commercial vehicle tax changes coming in 2025 that business owners need to be aware of, including changes to what’s actually classed as “commercial”. Some of these changes will also impact you if your employees use company cars. 

In no particular order, they are: 

• Fuel duty
• Vehicle advisory fuel rates 
• Tax on electric vehicles
• New classification for double-cab trucks
• Congestion Charges for EVs
• Vehicle excise duty increases

Fuel Duty

The good news is that the fuel duty rate (currently 52.95 pence per litre) is frozen until March 2026. While that’s still a while off, if you have a larger fleet of commercial vehicles, keep any potential increases in mind for forward planning. We’ll be keeping an eye out for news of the freeze potentially ending.

Vehicle advisory fuel rates 

Advisory fuel rates increased from 1 March 2025, so you’re likely to experience cost increases if your business uses company cars. 

The cost per mile has increased from 14p to 15p for petrol cars with an engine size of up to 1,400cc and diesel cars with an engine size of up to 1,600cc.

Tax on electric vehicles 

Until now, EVs have been exempt from road tax. That’s changing, much to the annoyance of EV drivers. If you use an electric van as a commercial vehicle, you will be charged the standard rate of road tax after 1 April 2025.

In addition to the increase road tax, anyone buying an EV after April 2025, will also have to pay a first-year rate of £10 and an Expensive Car supplement of £410 if the list price is more than £40,000.

New classification for double-cab trucks

Double cab pick-up trucks with a payload of at least one metric tonne won’t be classified as vans for benefit-in-kind (BIK) or capital allowance purposes from 6 April 2025. Instead, they’ll be classified as cars – meaning you could see your BIK payments go up dramatically. 

These vehicles will now be taxed in line with some of the most polluting petrol and diesel car, which generally attract a rate of more than 35%. However, there is a way to hold off this increase. Purchase a new double cab pick-up truck before the beginning of April, and it will retain its commercial vehicle classification until the earliest date between disposal, lease expiry, or April 6 2029.

Congestion Charges For EVs 

From December 2025, even EVs and hydrogen fuel cell vehicles will be liable for the Congestion Charge of £15. If you use an electric van for London-based work, you should factor this into your budgeting.

Vehicle Excise Duty Increases

All brand-new vehicles are subject to a higher rate of tax (known as Vehicle Excise Duty or ‘VED’) for the first taxable year of owning the car. The rate depends on your vehicle’s CO2 emissions. Vehicle Excise Duty rates will rise for all types of vehicles from April 2025.

Check out the table below for a full list of the VED increases.

Here to help your budget go further

Our dedicated sales team are here to help every step of the way when buying a used commercial vehicle. We are regularly in the know about latest regularity and government rules and procedures and can help discuss your needs and requirements to make your budget go as far as possible. 

Contact
MM Acquisitions Ltd
The Willows
Millennium Road
Preston
Lancashire
PR2 5BL

01772 556 130
Email us
?Enquire online