Petrol, diesel, and electric car owners are all being targeted by fraudsters ahead of changes to the Vehicle Excise Duty (VED) system.
Tax changes in April
From 1 April, drivers of electric vehicles (EVs) will no longer be exempt from paying VED. EVs registered after 1 April 2025 will be liable for a first-year rate of £10 until 2029. EVs registered between 1 April 2017 and 31 March 2025 will now have to pay the same standard rate of road tax (£195 per year) as all other motorists.
Drivers of EVs costing more than £40,000 will also have to pay the £425 per year ‘Expensive Car Supplement’.
From April, all cars emitting 1-50g/km of CO2 (including most plug-in hybrids) will see the first year’s tax bill rise to £110. Currently, hybrids in this band pay zero VED in the first year, while petrol and diesel cars pay £10.
New cars emitting 51-75g/km of CO2 will see car tax increase from £30 (or £20 for hybrids) to £135.
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The flat-rate cost of car tax from April 2025 is £195, but you may pay a different rate if your car was registered before 2017.
Scam warnings
With just weeks to go until the changes to VED take effect, scammers are tricking drivers with fake VED payment requests, leading many to unwittingly hand over their personal and financial details.
Andy Wood, an international tax adviser at Tax Natives, said: “Tax changes always create an opportunity for scammers, and the upcoming VED updates are no exception. Criminals are taking advantage of the uncertainty by sending fake tax demands, often designed to look like official communications.
“The deceptive nature of these scams means that many drivers, particularly those unfamiliar with the changes, could be tricked into making payments to fraudsters.
“With the Government introducing VED charges for EVs and increasing rates for petrol and diesel cars, many drivers are unsure about what they owe. Scammers exploit this uncertainty, sending out bogus tax payment requests to steal personal and financial information.”
How to avoid VED scams
Drivers should remain cautious and verify any tax-related communication before making payments. Be especially wary if you receive an email or text asking for payment and it doesn’t align with your renewal date.
Many scams can be identified through poor spelling, unusual formatting, and unofficial email addresses that do not match the DVLA or Gov.uk domains.
Victims of VED scams could not only lose money, but they also risk identity theft and further fraudulent activity on their accounts.
Wood added: “Once fraudsters have access to your personal details, the consequences can extend far beyond a single scam. Criminals can use stolen data to commit further fraud, including opening accounts or applying for credit in your name.
“Motorists should take a proactive approach by reviewing their VED renewal dates now and ensuring they are aware of the genuine tax charges they will face. If in doubt, contact the DVLA directly – never respond to unsolicited messages requesting payment.”
