Drivers can follow 'simple' tip to save themselves £195 in car tax before April
Under the Labour Party government, car tax and Vehicle Excise Duty (VED) is set to skyrocket for road users, motorists and drivers up and down the country.
Drivers have been handed a "simple" tip to save themselves £195 in car tax BEFORE April. Under the Labour Party government, car tax and Vehicle Excise Duty (VED) is set to skyrocket for road users, motorists and drivers up and down the country.
Jonathan Such, motoring expert at the vehicle finance provider First Response Finance, says EV owners who tax their vehicle before the exemption ends will not have to pay until 2026. He advised: "By renewing your vehicle tax before April 2025, you could avoid paying Vehicle Excise Duty (VED) for an extra year, saving yourself £195 or more.
"Getting in there early means you'll delay the deadline for paying tax on your EV to when it's next due for renewal. This will be in March 2026, assuming you renew in March 2025." He added: "It is simple to do, and you can re-tax it at any time on the Government website, using your registration number and the reference number on your V5C Registration Certificate (logbook).
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"This simple step could make a real difference as millions of drivers start facing these additional costs. Whether you’re looking at financing your next car or managing your current costs, small savings like this can really add up."
It comes as Mike Hawes, Chief Executive of the Society of Motor Manufacturers and Traders (SMMT), warned that the upcoming tax hike could see a sales slump. He explained: "January’s figures show EV demand is growing – but not fast enough to deliver on current ambitions. Affordability remains a major barrier to uptake, hence the need for compelling measures to boost demand, and not just from manufacturers.
"The application, therefore, of the ‘Expensive Car Supplement’ to VED on electric vehicles is the wrong measure at the wrong time. Rather than penalising EV buyers, we should be taking every step to encourage more drivers to make the switch, helping meet Government, industry and societal climate change goals."