Road tax changes for electric vehicles – How to secure an extra 12 months tax-free

If you own an electric or low-emission vehicle, you have likely enjoyed the benefit of paying zero road tax.

However, from 1 April 2025, all electric, zero, and low-emission cars, vans, and motorcycles will be subject to Vehicle Excise Duty (VED) in the same way as petrol and diesel vehicles. 

Fortunately, there is a simple way to get an extra 12 months free before the charges kick in.  

If you renew your road tax by 31 March 2025, you can secure another year without paying – even if your current tax has months left on it. 

What is changing from April 2025? 

Currently, electric vehicles (EVs) fall into Band A, meaning no tax is due.  

From April 2025, this band will be scrapped, and EVs will move into taxable categories. The amount you will pay depends on when your vehicle was first registered: 

• Cars registered on or after 1 April 2025 – First-year tax of £10, then £195 per year thereafter. 

• Cars registered between 1 April 2017 and 31 March 2025 – £195 per year. 

• Cars registered between 1 March 2001 and 31 March 2017 – £20 per year. 

• Hybrids and AFVs – No longer receive a £10 discount. Tax will depend on registration date and emissions. 

• Electric vans – Will pay the standard light goods vehicle rate. 

• Electric motorcycles and tricycles – Will move to the smallest engine size tax band. 

• New EVs over £40,000 – Subject to the standard rate plus the expensive car supplement for five years. 

How to get another 12 months tax-free 

If you own an EV and want to maximise your tax-free period, tax your vehicle before 31 March 2025. 

You do not need to wait for your existing tax to expire, you can renew early and extend your zero-tax status for another year.  

This means you won’t have to start paying until April 2026, giving you extra savings before the new system fully takes effect. 

What should you do next? 

For businesses and individuals alike, this change will affect running costs.  

If you operate a fleet of electric vehicles, review your tax strategy now to minimise future costs. 

Have questions about how these changes could impact your finances? Speak with our team for expert advice on tax planning and compliance.