Millions of electric vehicle (EV) owners in the UK will soon have to pay Vehicle Excise Duty (VED) for the first time, as the government brings EVs in line with petrol and diesel cars. This new rule, starting in April 2025, means over a million EV drivers will now face an annual tax bill of around £195.
However, motoring experts say that by acting now, EV owners can delay paying this tax for another year—potentially saving £195 or more.
Why Are Electric Vehicles Being Taxed?
Until now, EVs have been exempt from car tax, as part of a government initiative to encourage drivers to switch to cleaner vehicles. However, with the rise in electric vehicle ownership, the government has decided to end the exemption and apply the same VED rules as petrol and diesel cars.
From April 2025, all zero-emission vehicles will be subject to standard road tax rates, meaning EV owners will no longer avoid annual vehicle tax costs.
How Much Will EV Owners Have to Pay?
From April 2025, EV drivers will need to pay:
| Vehicle Type | Current VED Rate (2024) | New VED Rate (From April 2025) |
|---|---|---|
| New electric vehicles (first-year rate) | £0 | £10 |
| Standard annual tax (after the first year) | £0 | £195 |
| Expensive EVs (£40,000+ value) | £0 | £390 |
Note: The “expensive car supplement” applies to EVs worth £40,000 or more, meaning some drivers could face an even higher bill.
How to Delay Paying EV Tax Until 2026
By renewing your car tax before April 2025, you could avoid paying VED for another year!
Step-by-Step Guide to Re-Taxing Your EV Early:
Visit the official Government website for vehicle tax renewal.
Enter your registration number and V5C logbook reference number.
Renew your vehicle tax before April 2025 (preferably in March 2025).
By doing this, your next renewal date will be set for March 2026, delaying the new tax charges!
Expert Advice: Why You Should Act Now
Jonathan Such, motoring expert at First Response Finance, explains:
“Until now, one of the major benefits of owning an electric vehicle has been the financial incentives. But with car tax rules changing in April 2025, EV owners will now face an extra cost of around £195 per year.
By renewing your vehicle tax before April 2025, you can push back the tax deadline until March 2026, potentially saving yourself £195 or more.”
Why This Small Step Matters
Saves you £195+ for another year
Delays your tax renewal until March 2026
Easy process – can be done online in minutes
What Should EV Owners Do Now?
If you own an EV, consider renewing your vehicle tax before April 2025 to avoid paying VED for an additional year. While this won’t prevent future charges, it will give you an extra year without paying car tax—helping you save money in the short term.
With more financial changes expected for electric vehicle owners, it’s important to stay informed and take advantage of cost-saving opportunities whenever possible.
