UK drivers will soon face changes that may lead to higher travel expenses due to a series of new rules coming into effect as early as 1 March. One of the significant changes is the adjustment of HMRC’s Advisory Fuel Rates, which are used to determine the reimbursement for employees using company cars. For example, the rate for diesel vehicles with engines up to 1,600cc will increase from 11 to 12 pence per mile, while petrol cars in the 1,401-2,000cc range will see a rise from 14 to 15 pence per mile. However, electric vehicles will continue benefiting from a lower rate of seven pence per mile, a figure derived from data provided by the Department for Energy and Net Zero.

Additionally, a new system for vehicle registration is set to take hold, with ‘25’ number plates being introduced for cars registered on or after 1 March 2025. Motorists seeking personalized number plates must adhere strictly to the rules, as any deviation—such as displaying a number indicating a newer registration date than the vehicle actually has—can result in penalties up to £1,000 and potential confiscation of the plate. These number plate conventions are updated twice a year, with guidelines on aspects such as the shape, font, and colour firmly regulated by the DVLA.

In another development, starting from 1 April, electric vehicle owners will face a change in their vehicle excise duty. While the first-year car tax for new electric vehicles will be set at £10, which remains considerably lower than that for other types of vehicles, those electric cars valued over £40,000 will incur an additional Expensive Car Supplement of £195 from 2025. These changes are aimed at ensuring that safer and more compliant driving habits are both encouraged and enforced, as evidenced by recent data showing significant numbers of licence revocations by the DVLA across various regions in the UK.