New tax rates will soon hit motorists across the country (Image: Getty Images)
Electric and low-emission vehicle owners can enjoy an additional year of zero road tax with a simple tactic, despite the looming 2025 rule change that eliminates the existing electric vehicle (EV) car tax exemption. From April 2025, EVs registered from April 1, 2017 to March 31, 2025, ordinarily exempt, will be subject to the standard annual road tax rate of £195.
Buying a new EV after April 2025 means incurring the minimal first-year vehicle tax rate of £10, before capitulating to the usual £195 yearly road tax from the second year onwards. Yet, there’s a clever way out, as advised by online used car dealer Cinch, which involves a bit of pre-emptive renewal.
By refreshing your road tax before April 2025, drivers can dodge the £195 fee for one more year, until March 2026. That would benefit lots of people: the RAC says there are around 1.4 million electric cars on the road .
Cinch says: “Simply go through the process online using your number plate and 11-digit reference number on your V5C log book, and you’re sorted. The government website will ask if you’re sure because technically, you’re taxing your car twice until your original road tax expires, but you didn’t pay then, and you won’t pay now, so it’s no big deal. And there you go – £195 saved for another year.”
For current EV owners eyeing a new purchase post-April, the initial year’s tax would again be a mere £10, the reports.
However, other changes to car tax due in April will affect EVs and low emission cars registered between March 1, 2001, and March 31, 2017, that emit up to 100g/km of CO2. These vehicles, which currently pay no road tax (though they still need to be taxed with the DVLA even if no payment is required), will face a £20 annual road tax from April 2025.
If your vehicle emits between 101-110g/km or 111-120g/km of CO2, the current car tax rates of £20 and £35 respectively will stay the same this April. However, for vehicles emitting more than these levels, the car tax will rise.
For example, if your car emits between 121-130g/km of CO2, the yearly car tax will increase from £160 to £165. Cars producing over 255g/km of CO2 will see their tax rate climb from £735 to £760 from April.