Car tax, road tax, Vehicle Excise Duty (VED) – whatever you call it, no one loves paying it. The rules about VED are changing, along with the whole motor industry. We’re entering a new world of electric vehicles and hydrogen-powered engines, and the taxman’s having to adapt alongside it. For instance, the 2023 first-year rates for zero-emission cars were set at £0 to encourage drivers to switch to greener vehicles. The same goes for Alternative Fuel Vehicles (AFVs) that pump out under 50g of CO2 per kilometre. In 2025, though, the rules will be changing again, meaning many drivers of previously tax-exempt vehicles will start having to pay VED as well.

As always, where there’s tax to pay, there are ways of ending up paying too much. Maybe you’re getting off the road altogether, or perhaps just switching over to public transport. Does that mean you’ve lost the road tax you’ve already paid in advance? Probably not, because you can claim back anything you’re owed in a DVLA tax refund. Here’s what you need to know.