Time is running out for electric vehicle owners – Secure one more year of tax-free driving before the rules change

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.