How EV owners can get one more year tax-free

Electric vehicle (EV) owners in the UK currently enjoy an exemption from Vehicle Excise Duty (VED), commonly known as road tax. However, starting from April 1, 2025, this exemption will end and EVs will be subject to VED charges.

Right now there’s a strategic opportunity for current EV owners to extend their tax-free period by an additional year by making an early tax renewal before the April 1 2025 deadline.

Understanding the upcoming VED changes for EVs

The UK government has announced that, effective April 1, 2025, all EVs will be required to pay VED to ensure a fair contribution to road maintenance and infrastructure. The specifics of these charges are as follows:

EVs registered between April 1, 2017, and March 31, 2025: These vehicles will transition to the standard annual VED rate, which is currently £195.
EVs registered on or After April 1, 2025: Newly registered EVs will incur a first-year VED rate of £10, followed by the standard rate of £195 in subsequent years.

Early tax renewal

Current EV owners have a unique chance to delay the onset of the £195 VED payment by an additional year by renewing your EV’s tax before April 1, 2025.

Additionally, if your EV has a list price exceeding £40,000 and is registered on or after April 1, 2025, it will be subject to an extra £425 annual charge for five years, known as the “expensive car supplement.” Acting now can help you avoid this supplementary fee.

It doesn’t matter what month your EV expires, you can re-tax it anytime.

So simply visit the government’s vehicle tax website with your vehicle’s registration number and logbook (V5C). Follow the instructions to renew your tax before the April 2025 deadline.

If you have any thoughts on this topic, or any other consumer issues you would like us to cover, feel free to get in touch with us at support@resolver.co.uk.