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Full list of new driving rules in March and April everyone should know

Britons to face changes to London’s Ultra Low Emission Zone (ULEZ), benefits for electric car owners, and adjustments to fuel duty

Emily Atkinson
Thursday 02 March 2023 08:40 GMT
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Autumn Budget: Electric car owners to start paying road tax from 2025

Motorists are set to be slapped with a new set of driving rules and changes this year, with some alterations expected to impact thousands of Britons.

The rules include an expansion of London’s Ultra Low Emission Zone (ULEZ), benefits for electric car owners, and adjustments to fuel duty.

Here we take a look at the eight new rule changes for drivers to ready themselves for in 2023:

TfL Scrappage scheme

From 30 January 2023, Londoners receiving certain disability and means-tested benefits will be able to apply to TfL’s car and motorcycle scrappage scheme.

Beneficiaries can receive a grant payment, or a grant payment plus one or two Annual Bus & Tram passes.

A separate van and minibus scrappage scheme will also be available for sole traders, micro-businesses (10 or fewer employees) and charities.

There will also be ULEZ support offers for successful scrappage scheme applicants as well as offers for all Londoners to take advantage of, whether eligible for a grant or not.

Number plates

Rules on the appearance of number plate lettering changed last year – and those rules will stay in place until the latest numbers are announced in March 2023.

Number plates change twice a year for newly manufactured vehicles, once on 1 March and for the second time on 1 September.

From March next year, motorists will be able to register a new vehicle under the 23 registration plate. In September, new cars will be registered under the 73 plate.

Fuel duty rates

UK fuel duty rates were slashed by 5p for 12 months to help struggling families manage the soaring price of fuel alongside other rising household costs.

Come 23 March 2023, however, this reduction will end, and the Office for Budget Responsibility (OBR) has suggested that fuel duty may increase.

Plans for fuel duty will likely be outlined by the government in chancellor Jeremy Hunt’s Spring Budget.

ULEZ expansion

ULEZ is an area of London in which people driving the most polluting vehicles are charged as part of a push to limit the numbers of those that don’t meet emissions standards – in turn, improving air quality across the capital.

But, from 29 August 2023, ULEZ is set to undergo its third expansion, and likely impact thousands more drivers in its wake.

At present, ULEZ covers all areas within the North and South Circular roads, but will soon extend to all of the city’s 33 boroughs.

For those whose vehicles do not meet ULEZ emissions standards, a £12.50 daily charge must be paid to drive inside the zone.

This applies to cars, motorcycles, vans, and specialist vehicles (up to and including 3.5 tonnes), and mini buses (up to and including five tonnes).

Benefit in Kind (BiK) rates

Benefits in Kind (BiK) are goods and services provided to an employee for free or at greatly reduced costs on top of their salary.

Those furnished with a company car must pay a BiK contribution – which is more commonly referred to as a company car tax.

Company cars are allocated a BiK percentage banding, and rates have steadily creeped up.

Every car has a BIK percentage banding. In the last few years, these rates have been steadily increasing.

As it stands, a petrol car which produces 100g/km emissions pays 25 per cent BiK compared with just 13 per cent in 2013.

The government has said rates will remain frozen until April 2025 in the hopes of encouraging employees to opt for electric vehicles.

Parking on pavements in Scotland

Scotland’s delayed implementation of its ban on pavement parking and dropped kerbs is set to be enforced this year.

The move was announced in 2019, but its implementation was pushed back due to the pandemic.

Former transport secretary Michael Matheson said in 2021 the ban would not be enforced before 2023 while various assessments were carried out.

Heavy goods vehicle levy

Heavy goods vehicles weighing over 12 tonnes are charged a levy cost of any damage or wear they inflict on British roads.

The levy was suspended for UK-registered HGVs during the pandemic, and extended for another year in August 2022.

This suspension will be lifted in August 2023, meaning freight companies will start paying the extra costs again.

Excise Duty for electric car owners

Though owners of electric cars will continue to enjoy 0 per cent VED for the next two years, they will be hit by a new tax from April 2025.

Chancellor Jeremy Hunt announced in his autumn statement that zero-emission vehicles will lose their vehicle excise duty (VED) exemption from that date.

Owners of EVs who currently pay no VED will face an annual charge of up to £165 for cars and £290 for vans.

The Treasury said the changes are estimated to raise an extra £1.6 billion by 2027/28.

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