UK Drivers Face Higher Costs as New Motoring Rules Begin

As of 1 March, drivers in the UK are encountering several new motoring regulations and costs, which could increase their total expenditure. Among these changes are adjustments to the Advisory Fuel Rates, which are determined quarterly by HM Revenue and Customs (HMRC). These rates influence the reimbursements employees receive when driving company cars for business purposes. Specifically, the reimbursement rate for diesel cars with smaller engines (up to 1,600cc) is increasing from 11 to 12 pence per mile. Similarly, petrol vehicles with engine sizes from 1,401 to 2,000cc will see a rise in their rate from 14 to 15 pence per mile. Electric vehicle drivers, however, will continue benefiting from the unchanged rate of just seven pence per mile, calculated using data from the Department for Energy and Net Zero. Although these adjustments are officially effective from today, the previous rates remain valid for an additional month.

Additionally, British motorists buying new cars will now encounter new vehicle registration plates from today onward. These plates will carry the digits '25', indicating that the vehicles were registered on or after 1 March 2025. Regulations surrounding personalized number plates are particularly stringent, and failure to adhere to them could result in penalties of up to £1,000 and confiscation of non-compliant plates without compensation. Vehicle owners must ensure their plates accurately reflect the age of their car, as displaying plates that imply a newer registration date than accurate is strictly prohibited.

New number plates are issued twice per year—in March and September. This September, new plates will be marked with the digits '75'. Restrictions regarding the representation of newer registration dates continue to apply during each plate update. The UK's Driver and Vehicle Licensing Agency (DVLA) provides further information regarding this, including the acceptable design, visibility, fonts, and colors for number plates, as well as a personalized plate lookup to ensure compliance.

Significantly, from 1 April, electric car owners will face the introduction of the vehicle excise duty, commonly known as car tax. Owners of electric vehicles registered after this date will pay a £10 annual tax, still much lower than the £190 annual rate standard for petrol and diesel cars. Owners of electric vehicles valued over £40,000 will also start paying an Expensive Car Supplement, an additional annual fee of £195 added to the standard car tax. This supplement had previously applied only to other vehicle types since 2017.

Safe and lawful driving remains essential for motorists aiming to control costs and maintain driving privileges. The DVLA recently reported that licenses for some 140,000 drivers in the UK have been revoked, highlighting the consequences of disregarding motoring rules.