Motorists are being warned about new driving law changes introduced over the past few weeks that could impact their finances and their ability to stay on the road.
July saw several crucial tax changes introduced, including the confirmation of pay-per-mile, while changes to the popular Motability Scheme were rolled out.
GB News has rounded up the most important driving law changes introduced over the last month that you may have missed.
Car tax
The Labour Government published its response to the Electric Vehicle Excise Duty (eVED) plans earlier this month and confirmed that the controversial measures would go ahead.
Electric car owners are set to face a pay-per-mile tax of 3p, while plug-in hybrid drivers will pay 1.5p, as the Government attempts to claw back finances lost due to falling fuel duty rates.
The consultation received more than 5,000 responses from drivers and motoring organisations, which showed support for charging road users who travel more a higher rate.
Several significant driving law changes were introduced across the country over the last month
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GETTY/MOTABILITY
It stated that it would not proceed with the proposed requirement for vehicles under three years old, which are not currently required to have an annual MOT, to have additional mileage checks.
Labour also “significantly simplified the arrangements for fleets and leasing companies to reflect the way these businesses manage large vehicle fleets”.
Some drivers were also handed a slight reprieve on their tax payments after the introduction of a so-called VED “holiday” between July 1, 2026, and June 30, 2027.
Those who pay tax on heavy goods vehicles over 3,500kg, in tax classes: standard HGV, trailer HGV, special types, combined transport and island goods vehicles, will pay just £1.
Significant changes to the Motability Scheme were introduced on July 1
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MOTABILITYMotability
Massive changes were introduced for Motability customers following an announcement from former Chancellor Rachel Reeves at the 2025 Autumn Budget.
It outlined that VAT and Insurance Premium Tax will now apply to the majority of new leases placed from July 1, 2026.
Motorists are now subject to 20 per cent VAT on top-up payments, which are made in addition to the transfer of eligible welfare payments for more expensive vehicles.
New mileage rates have also been introduced for three-year leases (30,000 miles) and five-year leases of a wheelchair-accessible vehicle (50,000 miles).
Andrew Miller, CEO of Motability, said: “We’ve taken careful steps to manage these additional costs so we can keep the Scheme affordable and sustainable for the long term.
“Our priority has been to protect what matters most in your lease, reduce the impact of the tax changes [and] maintain the good value of the Scheme.”
The rollout of these rules has been delayed in Scotland following negotiations, meaning customers who receive their allowance from Social Security Scotland will see changes from September.
The FCA originally planned for the majority of drivers to receive their compensation by the end of 2027 and the beginning of 2028 | FCA
Car finance
The Financial Conduct Authority confirmed that it would be partially suspending its motor finance scheme as it waits to hear legal challenges.
The Upper Tribunal confirmed that legal challenges would be heard in relation to the redress scheme, either in December this year or February next year.
Legal challenges have been mounted by Consumer Voice, represented by Courmacs Legal, Volkswagen Financial Services, Mercedes-Benz Financial Services, and Crédit Agricole Auto Finance.
The FCA stated that drivers could be left waiting until “2028 or beyond” for their compensation if they face further delays or legal challenges.
Fresh MOT test maximum service charges launched earlier this month
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GETTYMOT tests
The Driver and Vehicle Standards Agency (DVSA) published its response to a months-long consultation on new MOT centre service charges.
It suggested increasing the maximum service charges that authorised testing facilities (ATFs) can charge customers to use their facilities.
After analysing responses, 99 per cent of ATFs and 95 per cent of respondents who were both vehicle operators and ATFs supported the measures.
ATFs will now be able to charge £70 for heavy goods vehicles, £50 for trailers and £90 for buses and coaches.
