The new UK driving rules every motorist needs to know

First, the good news: motorists can secure extra funding for an electric car. And while electric car owners will face Vehicle Excise Duty for the first time from April, there’s a loophole that could help them avoid fees – if they act fast.

This month will also mark the end of a trial for AI road safety cars, while some drivers will face new driving licence updates.

Here’s a list of the biggest updates to driving laws over the next month.

New ‘25’ number plates arrive

The DVLA introduces new number plates twice a year, and the new 25 plate will now be installed on all new cars registered until the start of September.

Introducing new plates often leads to increased demand for new cars as people see it as a great time to trade in their old model. You can also find big discounts offered on models with the previous plate. Now is a great time to take advantage of deals on the 25-plate through Carwow.

Carwow has also revealed the 25-reg DVLA-banned plates, including those deemed offensive, inappropriate, or linked to sensitive topics.

Company car costs are going up

Motorists who fill up at UK petrol stations could receive more money back from their employer thanks to updates to HMRC’s advisory fuel rates.

These rates guide companies on how much to reimburse employees for fuel costs.

A 1p increase will be applied to petrol vehicles with engines between 1.4 and 2.0-litres, raising the reimbursement from 14p per mile to 15p per mile.

Diesel engines up to 1.6 litres will also see a 1p per mile increase, but there will be no changes to other engine sizes this time.

Driving licence update for Ukrainian drivers

If you’re from Ukraine, you’ll be allowed to continue driving in the UK as new driving licence rules come into effect.

Ukrainian driving licence holders will be able to use mopeds, motorbikes, and cars beyond the current 36-month limit.

The extension will allow them to drive for up to 54 months using their existing licences.

AI road cameras trial ends

This month will also mark the end of a trial involving AI road cameras that can automatically detect when motorists are using their phones or not wearing seatbelts.

Ten police forces across the country have trialled the new equipment, with officials stating that the latest analysis will help “inform a possible future roll-out nationwide”.

According to National Highways, there were also plans to install the technology on gantries for the first time.

More funding for electric vans

Good news if you’re looking to switch to an EV: motorists will be able to secure extra funding starting in March to help with the transition to electric vehicles.

An additional £120m will be available to ensure businesses can receive grants when buying certain vans.

For small vans weighing up to 2.5 tonnes, motorists can get £2,500, while £5,000 will be available for those buying larger vans up to 4.25 tonnes.

EV owners face a new tax, but there’s a loophole

While it’s great that electric van buyers can take advantage of additional funding, electric car owners are about to face a new expense. Starting 1 April 2025, electric car owners will have to pay Vehicle Excise Duty (VED) rates for the first time.

But MoneySavingExpert founder Martin Lewis has told road users that they could temporarily avoid fees by taking advantage of a simple loophole before the end of the month.

Since EV owners can re-tax their vehicles at any time, doing so before 31 March means they won’t be liable for VED rates until 2026.

Car change? Carwow!

Looking for a new set of wheels? With Carwow you can sell your car quickly and for a fair price – as well as find great offers on your next one. Whether you’re looking to buy a car brand new, are after something used or you want to explore car leasing options, Carwow is your one stop shop for new car deals.

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