Electric car owners have been urged to follow a trick to avoid paying for road tax until 2026 (Image: Getty)
Drivers who own a certain type of car have been given a simple yet surprisingly effective way to avoid an that could see them pay up to £605 more per year.
With continuing to grow in popularity across the UK, the Government is due to end its in April 2025, with owners forced to pay the same flat rate currently applied to or models.
However, Jonathan Such, motoring expert at the vehicle finance provider , highlighted that EV owners who tax their vehicle before the exemption ends will not have to pay until 2026.
He advised: “By renewing your vehicle tax before April 2025, you could avoid paying Vehicle Excise Duty (VED) for an extra year, saving yourself £195 or more.
“Getting in there early means you’ll delay the deadline for paying tax on your EV to when it’s next due for renewal. This will be in March 2026, assuming you renew in March 2025.”
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By renewing their road tax early, electric vehicle owners can go another year without paying (Image: Getty)
In a bid to encourage drivers to make the switch from their petrol or diesel model, electric vehicles have been tax exempt since 2011. However, this is due to end in April 2025 as the number of EV sales continues to rise.
As a result, electric cars that are more than a year old will be subject to a flat charge of £195. An additional £410 fee will also need to be paid for a vehicle with a retail price of over £40,000 for the first five years it has been registered.
However, since drivers are able to renew their road tax two months before it expires, many electric car owners can get free cover for a further 12 months, not having to pay until April 2026.
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From April 1 2025, EV owners could be subject to a yearly charge of up to £605 (Image: Getty)
Jonathan highlighted that renewing a vehicle’s tax is a straightforward process, despite the tip helping drivers save a small fortune on their running costs.
He added: “It is simple to do, and you can re-tax it at any time on the Government website, using your registration number and the reference number on your V5C Registration Certificate (logbook).
“This simple step could make a real difference as millions of drivers start facing these additional costs. Whether you’re looking at financing your next car or managing your current costs, small savings like this can really add up.”
Whilst sales of electric vehicles were strong in January 2025, making up nearly 24% of the new car market, Mike Hawes, Chief Executive of the Society of Motor Manufacturers and Traders (SMMT), warned that the upcoming tax hike could see a sales slump.
He explained: “January’s figures show EV demand is growing – but not fast enough to deliver on current ambitions. Affordability remains a major barrier to uptake, hence the need for compelling measures to boost demand, and not just from manufacturers.
“The application, therefore, of the ‘Expensive Car Supplement’ to VED on electric vehicles is the wrong measure at the wrong time. Rather than penalising EV buyers, we should be taking every step to encourage more drivers to make the switch, helping meet Government, industry and societal climate change goals.”