DVLA loophole will help drivers of these cars avoid upcoming tax hike
Motorists with a certain vehicle type could save almost £200 and get another year of free tax by following this loophole ahead of the April hike.
With major Vehicle Excise Duty (VED) rule changes set to come into force on April 1, motoring experts are urging drivers with EV cars to renew their car tax before the new rules are enforced at no extra cost.
Currently owners of fully electric cars are exempt from VED, however this will change in the spring. According to new legislations EV drivers will have to pay an annual standard rate of £195. This is the same price as drivers of recent petrol and diesel vehicles.
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LeaseLoco.com said motorists can renew their car tax in any month, regardless of when it is due to expire, so there is no reason why they cannot renew before April 1.
Drivers who do not renew before March 31 will then face extra charges, even if you still have months left on your current tax period, according to Lancs Live.
By re-taxing their EV online before 1 April - using the car’s registration number and reference number from the V5C logbook - drivers can secure tax-free motoring until March 2026, saving them £195 under the new standard rate.
Under the new legislation, buyers of new EVs will pay £10 in first-year showroom VED. From the second year onwards, they will be charged the same standard VED rate as petrol and diesel cars. John Wilmot, CEO and founder of LeaseLoco.com said: “While the introduction of VED for electric cars was expected, many drivers may not realise they can in fact delay these charges for another year by renewing their tax before April 1.
“Taking advantage of this short window to secure another year of tax-free driving is a no-brainer. It’s a simple step that could save you nearly £200, and with the deadline fast approaching, we’d encourage drivers to act now.
“Free road tax was a key incentive for EV adoption, helping offset the higher upfront costs of electric vehicles. Now, this policy shift risks slowing the transition to cleaner transport, particularly for those considering an EV as their next vehicle. While EVs are still cheaper to run than petrol cars, the removal of this benefit reduces the financial appeal, which could undermine the government’s net zero ambitions.
“However, it was only a matter of time before road tax was adjusted. The system was originally designed when EVs were a niche market, but with more electric cars on the road, the government will certainly be seeing a loss in tax revenue.
“While it’s fair that all road users should contribute, there’s an argument that this change could have been introduced more gradually or offset by additional incentives, such as improved charging infrastructure or purchase grants, to keep EVs attractive to consumers.”
