From 1 April 2025, electric vehicle (EV) owners will have to start paying road tax for the first time.
If you drive an EV, you could soon be paying up to £195 per year – but there’s a way to keep your tax bill at £0 for an extra 12 months.
The key? Act before 31 March 2025.
What will Electric Vehicle owners pay from 1 April?
Currently, EVs are tax-exempt, but this is ending.
Here is what you’ll pay from April 2025, based on your vehicle’s registration date:
- New EVs (from April 2025) – £10 in year one, then £195 per year.
- EVs from 2017–2025 – £195 per year.
- EVs from 2001–2017 – £20 per year.
- Hybrids and alternative fuel vehicles – No longer get a discount—tax depends on emissions.
- Electric vans and motorcycles – Now taxed under the standard rate for their category.
- New EVs over £40,000 – Subject to a five-year luxury tax surcharge.
The loophole – renew early, save big
If you renew your EV’s road tax before 31 March 2025, you can extend your tax-free status by a full year, even if your current tax is not due yet.
This simple move means you won’t have to pay road tax until April 2026.
What should you do now?
- EV owners – Renew before the deadline to maximise savings.
- Fleet managers – Plan ahead to minimise increased costs
The deadline is fast approaching – act now and keep your EV tax-free for as long as possible!
Need tax advice? Our tax experts can help you navigate these changes. Contact us today.
