Motorists have the chance to sidestep a £195 car tax hike by taking one straightforward action before April. As car tax regulations shift in April under the Labour Party government, owners of electric vehicles (EVs) will be subject to the same car tax as petrol and diesel vehicle drivers, which could mean an annual cost of around £195.
However, if you renew your vehicle tax before April 2025, you could dodge paying Vehicle Excise Duty (VED) for another year, potentially saving yourself £195 or more. Jonathan Such from the car finance company First Response Finance remarked: “Until now, one of the major benefits of owning an electric vehicle has been the financial incentives that come with them.”
He highlighted one of the key perks, saying: “One of the main ones being Vehicle Excise Duty (VED) exemption.”
Jonathan further advised: “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.”
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”, reports Birmingham Live.
“Whether you’re looking at financing your next car or managing your current costs, small savings like this can really add up.”
According to Martin Lewis’ Money Saving Expert, if your electric vehicle was first registered on or after 1 April 2017, it’s advisable to re-tax it in March 2025. You can do this at any point before 1 April 2025, but renewing in March will maximise your savings.
By doing so, you’ll delay your first road tax payment until March 2026, when it’s next due for renewal. It doesn’t matter when your current tax expires – you can re-tax your EV at any time using your car’s registration number and the reference number from your V5C registration certificate (logbook) in your name.