A furious motorist has been left frustrated after receiving a DVLA letter demanding £195 in car tax fees despite believing his vehicle was exempt. Motoring expert @harleygperkins was left confused after receiving the annual car tax renewal letter for his electric Tesla Model Y.
Harley explained that when he purchased his electric vehicle, free road tax was the “biggest incentive” with the motorist unaware he had to pay fees. However, a 2025 rule change has introduced Vehicle Excise Duty (VED) rates for battery electric models, with road users no longer enjoying the benefit of tax exemptions. Electric car owners across the country are set to receive the DVLA renewal letters this year with owners forced to pay the fees to legally stay on the road.
Speaking on TikTok, Harley said: "I've just had this letter come through the post saying I have to pay road tax on my electric Tesla Model Y. When I bought this car, the incentive was that you pay no road tax. That was like the biggest incentive.
“I was paying £720 a year on my Audi R8, £600 on my Audi A5. So I thought you know what, I'll have a year, I'll get an electric car and save a little bit of money.
"But no, the road tax is £107 for six months or £190 for a year. It's ridiculous. The following years are probably going to go up as well. Do you really think people are going to go out and buy Tesla’s now?”
Electric, zero and low-emission cars, vans and motorcycles have been subjected to vehicle tax fees since April 2025.
The change applies to both new and existing vehicles with the majority of owners paying the standard £195 VED rate. Meanwhile, vehicles with a list price of more than £40,000 face an additional £425 per year fee for five years.
It means owners of some of the most expensive electric vehicles in the UK will have tp pay £620 per year in VED rates to get behind the wheel. There was concern that a rise in VED rates would have an impact on the demand for electric models with tax exemptions among the biggest selling points.
Glen Sanderson, leader of Conservative-led Northumberland County Council was among those to call out the changes earlier this year.
He explained: “For many, the free road tax was the incentive to go for an electric car. The previous government deliberately did not change this tax to help the UK on its green promises. This is a slap in the face for climate change, and for all those who bought electric cars.”
