Electric car owners ‘impacted’ by new car tax | Tech News
Electric car owners will really feel the “impact” of a swathe of new car tax adjustments set to come back into impact in simply days, with some drivers paying up to £640 per yr. Although Vehicle Excise Duty (VED) adjustments will principally have an effect on petrol and diesel automobiles, particularly these with high emissions, EV owners are usually not utterly protected.
Electric vehicles was once absolutely exempt from VED tax expenses, however this was modified by Labour this time final yr. EVs registered after 2017 are actually charged the usual VED fee of £195 per yr, with charges to rise an additional £5 to £200 from April 1.
Owners additionally face the menace of expensive Expensive Car Supplement expenses, an extra £440 charge from April 1 for all fashions listed over £50,000. It means EV owners face paying annual payments of a whopping £640 per yr, a far cry from their tax-exempt standing simply 12 months in the past.
Speaking solely to Express.co.uk, Matt Crole-Rees, motoring professional at Confused.com car insurance coverage, mentioned: “The impact will be noticed mainly by EV drivers as April 1st marks one year since the end of their £0 road tax. Now, costs will increase to the standard rate of up to £200 annually. And the many with EVs worth over £50,000 will see an increase in car tax through the Expensive Car Supplement.
“This means drivers of these vehicles will incur an additional annual charge of £440 from their second year of use for up to 5 years, on top of their existing annual fees.”
VED tax bands face inflationary payment rises yearly with this yr’s collection of larger charges coming into impact from April 1. However, it’s not all unhealthy information for EV drivers, with a main replace coming into impact particularly set to focus on owners of battery automobiles.
Meanwhile, older electric automobiles registered earlier than April 2017 are nonetheless benefitting from distinctive tax breaks.
Vehicles over eight years previous producing 0g/km of CO2 will nonetheless pay completely nothing to make use of the roads, with the £0 payment retained for one more yr.
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