Motorists have just 26 days remaining to secure free car tax before major Vehicle Excise Duty (VED) changes come into effect. Electric car owners will pay VED road tax for the first time from April 1, 2025 with many motorists moved onto the £195 standard fee. Alongside this, electric car owners may be liable for an extra £425 Expensive Car Supplement (ECS) charge if their model is valued over £40,000.
The updates are one of the biggest changes to VED rates in years and could see many EV owners unaware of the updates caught out. However, experts have warned a simple loophole could see road users make drastic savings.
John Wilmot, CEO and founder of LeaseLoco.com said: “While the introduction of VED for electric cars was expected, many drivers may not realise they can in fact delay these charges for another year by renewing their tax before 1 April.
“Taking advantage of this short window to secure another year of tax-free driving is a no-brainer.
“It’s a simple step that could save you nearly £200, and with the deadline fast approaching, we’d encourage drivers to act now.”
Simply, electric car owners can re-tax their vehicle for free at any time online even if their renewal isn’t due.
It means those re-taxing their vehicle before the end of March can secure another 12 months without paying anything.
Vehicles will be taxed until March 2026 with motorists not paying a penny despite the rule changing from April 1.
Money Saving Expert Martin Lewis has also encouraged road users to take advantage of the offer before it was too late.
The finance guru explained: “Now the crucial thing of this is, you can re-tax at any time, even if you only did it two months ago.
“You can do it again now. You have to pay each time, but it’s currently free so there’s nothing to pay.
“So effectively this is a loophole that says, just go and do your retaxing as near to that deadline as possible and you get an extra year for free.”
