EV tax (VED changes) 2025

[Mo-mo]

Hi. I am looking to purchase a new EV soon via business contract hire. I understand EV cars will no longer be exempt from road tax and will be charged from April 2025 (https://www.gov.uk/government/publications/introduction-of-vehicle-excise-duty-for-zero-emission-cars-vans-and-motorcycles-from-2025/introduction-of-vehicle-excise-duty-for-zero-emission-cars-vans-and-motorcycles-from-2025).
My car will also be over the £40k threshold so will be liable for Expensive Car Supplement.

My question is when taking out a lease, road tax is usually included within the cost for the duration of the term. Will finance companies have taken this increased cost into account or will the extra charges be passed on to me separately?

I have asked lease company but they don't seem too sure.

[wargriff]

The majority of contract hire companies will have a quoting system that asks the quesion of registration date. If after the changes or before.
If you sign a contract and they have not worked the price increase into the monthly payment, that will be the contract hire companies issue, not yours.

[rudester]

wargriff said:

The majority of contract hire companies will have a quoting system that asks the quesion of registration date. If after the changes or before.
If you sign a contract and they have not worked the price increase into the monthly payment, that will be the contract hire companies issue, not yours.

That's not my experience. Any VED changes during the term of the lease are passed onto the customer. This has been written into every lease contract I've had, and I've had many.

[survivalist]

rudester said:

wargriff said:

The majority of contract hire companies will have a quoting system that asks the quesion of registration date. If after the changes or before.
If you sign a contract and they have not worked the price increase into the monthly payment, that will be the contract hire companies issue, not yours.

That's not my experience. Any VED changes during the term of the lease are passed onto the customer. This has been written into every lease contract I've had, and I've had many.

Same for ours.

[Mikebentley]

survivalist said:

rudester said:

wargriff said:

The majority of contract hire companies will have a quoting system that asks the quesion of registration date. If after the changes or before.
If you sign a contract and they have not worked the price increase into the monthly payment, that will be the contract hire companies issue, not yours.

That's not my experience. Any VED changes during the term of the lease are passed onto the customer. This has been written into every lease contract I've had, and I've had many.

Same for ours.

Likewise for me too with the lease company charging VED + VAT as they are according to HMRC providing a “service” to me. I challenged the VAT and was told HMRC make sure the VAT is charged so instead of £250 ps it was + 20%!