Several tax and rule changes are set to take effect in April, one of which will introduce a new car tax for electric vehicles (EVs).
Motorpoint experts are advising EV owners to take a crucial step before this deadline that could potentially save them £195.
Currently, EVs are exempt from road tax, but this will end in April. Most EV owners will face charges ranging from £10 to £195 depending on when their car was registered.
Mike Vousden, Motorpoint’s resident EV expert, explained: “At a simple level, as more car owners make the move to electric, the current exemption means that fewer motorists are paying vehicle excise duty (also known as road tax).
“So, there’s less tax being collected from motorists. The government is also losing out on fuel duty as EVs don’t require petrol or diesel, which has tax baked into the price at the pump.”
“The government has predicted that the loss of these two major sources of motor taxation could result in a ‘£35 billion black hole in finances’ – making the current system unsustainable.”
He explained that the new rates for EV cars registered before March 31, 2017, will be £20 a year. Those registered between April 1, 2017, and March 31, 2025, will face the biggest bill at £195 per year from April.
Anyone planning to buy an EV after the April 1, 2025 rule change will only need to pay £10 for their first year and then £195 from thereon.
EV owners have been given a tip to potentially delay the onset of new charges by re-taxing their vehicles before changes come into effect.
The expert advised: “An EV owner could effectively extend their road tax exemption by 11 months if they were to re-tax in March 2025 – ahead of the rules changing.”
They added, “This means that you’ll be delaying your payment until March 2026 when it’ll need renewing again – saving yourself £195. It’s undoubtedly a quirk in the system but something for EV owners to consider.”
However, the expert cautioned that this needs to be done early in March, as it is billed at the start of the month.
