Drivers who own a certain kind of car have been urged to check whether they can pay for their road tax now before the DVLA introduces a huge change.
April 2025 is set to be a bleak month for electric car owners. It will mark the first time most buyers will be forced to pay their road tax.
However, John Wilmot, CEO and founder of the car leasing deals site LeaseLoco.com noted that drivers could be able to dodge the charge for another year by taxing their car early.
He explained: “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.”
Whilst the Government has previously encouraged drivers to ditch their petrol or diesel cars by making electric vehicles exempt from vehicle excise duty (VED), more commonly called road tax, the increasing number of EVs on the road means the incentive will end on April 1 2025.
As a result, when their current tax expires, drivers will need to pay the same flat rate of £195 per year as a petrol, diesel, or hybrid vehicle owner.
In addition, new car buyers who choose a vehicle with a retail price of over £40,000 will also be liable to pay the expensive car supplement, adding £415 to their tax bills from the second to sixth year the model is registered on the roads.
Whilst the changes could leave drivers up to £620 worse off, LeaseLoco.com highlighted one simple and legal way to avoid paying for any road tax at all.
According to the DVLA, drivers are able to tax their vehicle up to two months before the current cover expires – an incentive enforced to give drivers plenty of time to pay for the charge if they are on holiday or otherwise busy when it is due for renewal.
As a result, electric vehicle owners who are due to pay for their road tax in April or May 2025 can register now and still take advantage of the exemption.
John suggested that the end of the electric car tax exemption was inevitable. However, a gradual change could have helped the Government maintain strong sales of EVs.
He added: “The system was originally designed when EVs were a niche market, but with more electric cars on the road, the government will certainly be seeing a loss in tax revenue.
“While it’s fair that all road users should contribute, there’s an argument that this change could have been introduced more gradually or offset by additional incentives, such as improved charging infrastructure or purchase grants, to keep EVs attractive to consumers.”