The Driver and Vehicle Licensing Agency (DVLA) has published its 2025‑26 accounts, containing the Comptroller and Auditor General (C&AG)’s Section 2 report on DVLA’s assessment, collection and proper allocation of Vehicle Excise Duty (VED).

DVLA is responsible for the collection of VED on behalf of HM Treasury. VED is a tax that must be paid for most types of vehicles used (or kept) on public roads in the United Kingdom.

VED revenue increased to £9.0 billion in 2025‑26, up £0.7 billion (8%) from 2024‑25. This increase reflects the removal of the exemption for zero‑emission vehicles from 1 April 2025, which brought more vehicles into scope.

Revenue also increased due to annual uprating of VED rates and growth in the number of licensed vehicles. DVLA collected £113 million in fines and penalties, compared with £110 million in 2024‑25.

View the accounts and audit report

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