Some car owners who act before April will be £195 better off

Many taxes and rules are changing in April as Labour opens their first financial year in power. One of which will hit electric vehicles with a brand new car tax.

However, Motorpoint experts are urging EV owners to take a crucial step before April which could potentially save them £195. Currently, EVs are exempt from road tax but this will be ending 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.

Current EV owners may be able to delay this charge by re-taxing their car before these new rules come into play. The expert explained: “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.

“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.”

The expert warned that drivers will need to do this at the beginning of March, in the coming days, because you’ll be charged from the start of the month. As a result, doing this at the end of March will see them still facing the new charges this year.