Drivers of electric vehicles have just days left to secure another year of free road tax before new Vehicle Excise Duty (VED) rules take effect from 1st April 2025.
Motoring editor at cinch, Sam Sheehan, is urging EV drivers to act quickly to avoid missing out on a potential £195 saving. “By simply renewing your road tax before the deadline, you can secure another 12 months of road tax for nothing,” he said. “For EV drivers that act quickly, this is a big cost saving that will help keep their annual motoring costs down for another year.”
From 1 April, all electric cars – regardless of their original registration date – will no longer be exempt from VED. Vehicles will move to the same tax structure as petrol, diesel and hybrid models, with a £195 standard annual rate.
The change brings to an end a long-standing incentive introduced to support the transition to zero-emission vehicles. Cars registered between 1 April 2017 and 31 March 2025 had qualified for the exemption.
Sheehan explained that renewing early is simple. “For EV drivers, the road tax renewal process is very straightforward. All they need to do is visit the government website and enter the 11-digit reference from their car’s log book (V5C) by 31 March 2025.”
He also cautioned against being put off by the government system’s early renewal warning. “Don’t get caught out. The system will warn drivers about renewing early. That’s because you’d usually have to pay twice until your original renewal date. However, this doesn’t apply to EVs because currently road tax is free.”
“Renewing your road tax will take you less than five minutes online,” he added. “You can even do it on your phone, so there’s no reason to put it off.”
After 1 April, EV drivers will also face new costs when buying a car. The first-year VED will be £10, rising to £195 annually from year two. For electric cars with a list price over £40,000, a £425 annual ‘expensive car supplement’ will also apply from the second to sixth years.
Drivers who fail to pay risk enforcement action. “From 1 April, EV drivers who don’t tax their car may receive an Out of Court Settlement letter demanding £30 plus 1.5 times the outstanding amount of tax,” said Sheehan. “Ignore that letter and you could be taken to the Magistrates Court, where fines can hit £1,000 or five times the tax owed, whichever is higher.
“Authorities can also clamp or impound untaxed vehicles spotted on the road, leaving you facing hefty release fees, or worse, your car being auctioned or crushed.”
