Car tax increase from April, but simple trick can save £195 for EV owners
Petrolheads, listen up! If you’re an owner of an electric vehicle (EV), there’s a quick and easy way to save yourself a whopping £195 before the new tax rules kick in this April. Currently, EV owners are exempt from road tax, a sweet deal that will be coming to an end soon. Come April, most EV owners will see charges ranging from £10 to £195 based on their car’s registration date.
For those with EV cars registered before March 31, 2017, the new tax rate will be £20 per year. On the other hand, vehicles registered between April 1, 2017, and March 31, 2025, will face the highest cost at £195 per year starting April.
However, here’s where the saving hack comes in – by re-taxing their cars before the changes take effect, EV owners may be able to delay the increased charges. Motorpoint’s resident EV expert, Mike Vousden, suggests that re-taxing in March 2025 could extend the road tax exemption by 11 months. This means you can push back the payment until March 2026, effectively saving yourself £195. A quirk in the system that savvy EV owners should consider.
The government faces a dilemma with the rising popularity of EVs. As more drivers switch to electric, the current tax exemptions are resulting in reduced revenue from vehicle excise duty and fuel duty, leading to a potential £35 billion deficit. By encouraging EV owners to re-tax early, it could help balance the books while allowing individuals to save in the short term.
This loophole in the system offers a win-win situation for both EV owners and the government. It’s a timely reminder for motorists to stay informed and take advantage of opportunities to minimise their expenses, especially in the face of changing regulations. By acting proactively, EV owners can navigate the upcoming tax changes with a bit of strategic planning.
It’s essential to stay ahead of the game and make informed decisions when it comes to managing vehicle-related expenses. By heeding expert advice and taking action before the tax deadline, EV owners can maximise their savings and potentially benefit from the current system’s nuances.
The road tax exemption for electric vehicles has been a significant incentive for many drivers to switch to cleaner and more sustainable options. As the landscape of car ownership continues to evolve, staying abreast of policy changes and making smart financial moves can help individuals make the most of their investments in eco-friendly transportation.
In conclusion, with the impending tax changes on the horizon, EV owners have a window of opportunity to save £195 by re-taxing their vehicles before the April deadline. This simple yet effective strategy showcases the importance of being proactive and strategic in managing expenses, especially in the evolving landscape of vehicle taxation and environmental policies. So, if you’re an EV owner looking to save some extra cash, now is the time to act and take advantage of this potential cost-saving opportunity.