Introduction
As 2025 draws to a close, a number of significant regulatory changes introduced by HM Revenue & Customs (HMRC) and other UK authorities will affect motorists, fleet managers and businesses. These updates relate to company vehicle tax, congestion charging, electric-vehicle infrastructure compliance, and professional driver qualification frameworks. Understanding these changes now will help you stay compliant, avoid penalties and plan ahead for 2026.
Key changes effective December 2025
Here are the main updates coming into effect in December:
1. End of Congestion Charge Exemption for EVs in London
From 25 December 2025, even electric and hydrogen-powered vehicles will no longer be exempt from the London Congestion Charge.
Although the charge free period from 25 December to 1 January means practical applications start 2 January 2026, the policy change is set.
This means fleets, EV owners and businesses operating in London need to budget for the daily charge.
2. EV Road Tax (Vehicle Excise Duty) and Benefit in Kind (BiK) Changes
From 1 April 2025 (not strictly December, but relevant for year-end planning), all new EVs will start paying Vehicle Excise Duty (VED) and the BiK rate for company cars will increase by 1 percentage point in each emissions band.
For business users of company cars, HMRC-administered BiK rules mean higher tax liabilities from the 2025/26 tax year.
3. Stricter EV Charger Compliance & Fines
From 2025, EV charging-station providers must ensure greater reliability, accessibility (including contactless payment) and face fines of up to £10,000 per non-compliant charger.
Companies providing workplace charging or public EV-charging infrastructure should review their contracts and operations now.
4. Professional Driver Qualification & CPC Changes
From late 2025, new variants of the Driver CPC (Certificate of Professional Competence) training regimes will apply for HGV, bus and coach drivers: e.g., a new “return to driving” module of 7 hours plus a reduced hour requirement.
Operators and fleet managers should update their driver-qualification tracking ahead of the December window.
What this means for you
Whether you are a private driver, fleet operator, business with company cars or involved in commercial transport, you should consider the following:
• Review your fleet and reimbursement policies: If you manage company cars, check how the BiK changes for 2025/26 affect tax and reimbursement schemes.
• Check your EV charger compliance: If you operate charging infrastructure (for fleet or rental), ensure your units meet the new reliability and payment-accessibility requirements to avoid costly fines.
• Budget for charge zone costs: If your drivers operate in central London, factor in the daily Congestion Charge even for zero-emission vehicles from January 2026.
• Ensure HGV/PCV driver compliance: If you operate large vehicles or run a driver-training business, check the timing of CPC changes and make sure all licence/qualification records are up to date.
• Communicate changes to drivers and staff: Ensure employees understand how changes affect them (e.g., increased tax, new charges) so you don’t face surprises.
Final thoughts
The driving regulation changes coming in December under HMRC and related governmental frameworks mark important steps in the UK’s transport transition. While some changes (like congestion-charge implications) may seem specific to London, others (like BiK and EV charger compliance) have national relevance. Staying ahead means being proactive now. Review your policies, systems and fleet strategy so you are not caught off-guard when the clock ticks into December.
