Big changes are coming to how UK drivers manage their car tax. The DVLA has started rolling out a modernised digital tax service that means you no longer need a paper log book (V5C) or reminder letter (V11) to renew your vehicle tax.
Sounds like a helpful upgrade — but what does it actually mean for you, especially if you’re considering a lease? In this blog, we break it down in plain terms and explain why leasing a car can make life simpler when it comes to car tax.
What’s changing with DVLA car tax in 2025?
The DVLA is shifting to a digital-first system. That means:
- You can now tax your vehicle online, even without your V5C logbook or a reminder letter.
- Drivers can sign up for free digital reminders via email or SMS to avoid missing renewals.
- The goal is to reduce paperwork, speed up renewals, and help drivers stay compliant.
While this change improves access, it also puts more responsibility on drivers to stay on top of renewals. Miss your deadline, and you could face a fine of up to £1,000.
But if you’re leasing a car, there’s some good news: you won’t need to worry about this.
Is car tax included in a lease?
Yes — and this is where leasing starts to shine.
When you lease a car through Car Leasing Made Simple, road tax is included for the full duration of your contract. That means:
- No need to worry about missed DVLA reminders
- No separate payments or surprise charges
- No admin stress
It’s just one of the many ways we help take the hassle out of driving a new car.
What if the car tax rate changes during my lease?
The price of your lease is set based on the current tax rate at the start of the agreement. If the rate goes up or down after that, your monthly lease payments stay the same — so you’re protected from future increases.
If there’s ever a change in how tax is applied to your type of car, our team will guide you through any impact — but for most customers, this won’t affect your day-to-day.
Do I need to register with the DVLA if I lease a car?
No — the lease provider registers the vehicle with the DVLA. This also means:
- You’re not responsible for keeping tax or registration details up to date
- You won’t receive a V5C logbook (this stays with the leasing company)
- You don’t need to worry about setting up tax renewal — it’s already covered
Why leasing is a smart choice in 2025
With costs rising and DVLA changes coming into force, leasing a car in 2025 offers more value than ever. Here’s why:
- Fixed monthly costs — No surprise tax hikes or admin fees
- Brand new car — Improved fuel efficiency, better safety tech, and reliable air conditioning for summer
- Maintenance bundles available — Keep your car in top shape with maintenance packages
- Flexible options — Whether you’re an individual, company, or fleet manager, we make it easy
Thinking about switching to electric?
Car tax isn’t the only thing changing — Benefit-in-Kind (BIK) tax on electric cars is still significantly lower than petrol or diesel, especially when leased through a salary sacrifice scheme.
You can also browse our EV leasing offers to see which options best suit your needs.
The bottom line: Car tax is one less thing to worry about
With DVLA systems going digital, drivers who buy and tax their own car will need to stay sharp — logging into new accounts, checking personal info, and keeping track of reminders.
When you lease with Car Leasing Made Simple, car tax is included and automatically managed for the entire duration of your agreement. You focus on enjoying your car — we’ll handle the paperwork.
Want to get started?
Browse our in-stock special offers and see how simple leasing can be.
Need help deciding which car is right for you? Speak to our team — we’re here to keep things clear, simple, and stress-free