Road tax changes

 

Government changes to road tax

Changes to road tax exemptions for low-emission and electric vehicles came into effect in April 2025. 

All our zero and low-emission vehicles are now liable for the yearly road tax charge, which is a minimum of £195 plus VAT for the tax year 2025/2026.

You can find out more about these changes and how they might affect you on the Government website. 

Who does the change affect?

If we gave you a zero or low-emission vehicle quote before October 2023

Your monthly payments don’t include the road tax cost, so we’ll invoice you for the full amount plus VAT when we next tax the vehicle.

This means you’ll need to pay the full road tax charge plus VAT in a single payment, on top of your usual monthly rental payment. There’s no option to pay the charge monthly.

If you pay by direct debit we’ll collect the payment automatically, so you won’t need to do anything.

If you end your contract earlier than planned, just let us know. We’ll refund you for any unused whole months of road tax after you return the vehicle. 

If you’re concerned about this extra payment or have any questions, please get in touch and we’ll explain your options. 

 

For all other fuel types, or if we gave you your zero or low-emission vehicle quote after October 2023

When we give you a quote, we include the total cost of road tax across the length of your contract.

If the road tax charge goes up or down during your contract, we’ll invoice or refund you separately.

 

If you have a Flexible or Finance Lease agreement

We arrange vehicle tax for you and charge you the full amount, plus VAT. We’ll explain the amount of VAT you need to pay on your invoice.

If you’re due a road tax refund when the vehicle is sold, we’ll apply on your behalf.

If you pay VAT as part of your contract

We include the road tax charge in your rental costs and add VAT to the total amount. This means you’ll pay VAT on the road tax charge.

If the road tax charge goes up during your contract, we’ll ask you to pay the extra amount, plus VAT.

We're here to help

Telling us about any accessibility needs or life events helps us support you in the best possible way. 

If you have any questions or would like some extra support, please visit our help centre

 If you can’t find the answer you need, call us on 0344 879 6633

This is also the best phone number to use if you want to tell us about any extra support you might need from us. Lines are open Monday to Friday, 9am to 5pm. We close at weekends and on bank holidays.  

You can also tell us more about your situation in Manage My Vehicle.

 

Money worries

If you’re finding it hard to manage your monthly payments, let us know straightaway on 0344 241 5335. We’re always ready to help and will explain your options. 

Our lines are open Monday to Friday, 8am to 5.30pm. We close at weekends and on bank holidays.

Money worries Link opens in same tab

 

Thanks for your feedback

Did you find everything you needed?

 

Please don't enter any personal information