Understanding your business... supporting your growth

Electric car owners in the UK have a limited-time opportunity to save a substantial amount on their car tax before new regulations take effect. Starting April 1, 2025, electric vehicles (EVs) will no longer be exempt from road tax, with owners facing a standard £195 annual charge. However, EV drivers can extend their tax-free status for an additional year by taking action before the deadline.

How to save on EV Road Tax 

  1. EV owners can renew their road tax online before 31st March 2025 to secure another year of tax-free driving

  2. With approximately 1.4 million EVs on UK roads, the collective savings could reach £273 million if all eligible drivers act by 31st March 2025.

  3. Use the government website (Vehicle tax for electric, zero or low emission vehicles – GOV.UK ) , entering your vehicle’s number plate and 11-digit reference number from the V5C logbook.

Important Details

  • The new tax applies to EVs registered between April 1, 2017, and March 31, 2025.

  • EVs registered after April 1, 2025, will pay £10 for the first year, then £195 annually.

  • Vehicles over £40,000 will incur an additional “expensive car supplement” of £425 annually for five years.

This tax change marks the end of a long-standing incentive for EV adoption, as the government aims to balance its finances while maintaining some advantages for electric vehicles over conventional fuel cars.

For more details, visit: Vehicle tax for electric, zero or low emission vehicles – GOV.UK

For expert advice or help with your tax and accountancy requirements, contact us at [email protected] or complete the enquiry form below.

By |2025-03-17T09:23:03+00:00March 17th, 2025|Uncategorised|