Thousands take advantage of ‘car tax loophole’ to | Tech News

Thousands of electric car house owners have saved thousands and thousands of kilos by taking advantage of a easy car tax loophole forward of main 2025 Vehicle Excise Duty (VED) updates. Electric car tax exemptions got here to an finish this Spring, and house owners will face £195 per 12 months in VED payments from April 1, 2025. 

However, finance consultants, together with Martin Lewis, had urged street customers to renew their coverage forward of the April 1 cut-off to make main financial savings. By refreshing their renewal date in March earlier than the date EVs had been charged, house owners may successfully secure one other 12 months free of charge in a main loophole. This means motorists who renewed their VED on March 31 can have paid nothing and won’t be accountable for charges till 2026. 

New knowledge from the DVLA exhibits street customers have completed precisely that, with a staggering 244,598 electric car house owners renewing their VED car tax coverage in March. 

This is a whopping 1,467% increase in contrast to the 15,614 renewals recorded a 12 months prior ,back in March 2024.

The figures show that EV house owners within the UK saved a potential £47,696,610 by renewing their VED early.

The figures had been obtained by motoring consultants at cinch as half of a Freedom of Information Act (FOI) request to the DVLA. 

Sam Sheehan, motoring editor at cinch defined: “Such a big increase in renewals shows just how many EV drivers might have got themselves another year of road tax-free motoring, and who wouldn’t want to save £195 if they had the chance?”

A better take a look at the info exhibits motorists in Bath took the most important advantage of the new little-known rule. 

Figures show that car tax renewal charges throughout town had been up an eye-watering 14,534% over the previous 12 months. 

Falkirk was subsequent with a whopping 7,219% increase in motorists renewing their VED phrases within the Scottish city.

Darlington seen a 5,617% adopted by West London (5,284%) and Birmingham (3,226%). New guidelines imply that electric automobiles registered between April 1, 2017 and March 31, 2025 can have to pay the usual VED price of £195. 

However, model new electric automobiles with a record price over £40,000 shall be among the many most affected due to the ‘Expensive Car Supplement’ payment. 

This is an further £425 price utilized on prime of the usual £195 payment over a period of 5 years between the second and sixth years on the street.

Sam added: “It goes to show how savvy EV drivers were ahead of the road tax changes – and how useful consumer advice led to savings for so many people.”