Electric taxi and private hire owners can save £200 before new tax rule change
Electric vehicle (EV) taxi and private hire vehicle owners can delay paying car tax for another year by renewing before April, potentially saving nearly £200.
From April 2025, all EVs will no longer be exempt from Vehicle Excise Duty (VED). Drivers of electric cars will have to pay the same standard rate as petrol and diesel vehicles, currently set at £195 per year.
However, motoring experts at LeaseLoco.com have highlighted a way to extend the tax-free period. By renewing their car tax online before 1 April 2024, EV owners can lock in another year of exemption, even if their current tax period still has months left.
The process is said to be straightforward. Drivers can re-tax their EV using their registration number and V5C logbook reference. This secures tax-free motoring until March 2026, avoiding the upcoming charges.
From April 2025, the new tax rules will also apply to newly purchased EVs. Buyers will pay a £10 showroom tax in the first year, followed by the full standard rate from the second year onwards.
John Wilmot, CEO of LeaseLoco.com, said: “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.”
He added that while tax-free road use was a key incentive for EV adoption, the Government’s decision to remove this benefit could slow the transition to electric vehicles. The shift comes as the Government looks to recover lost tax revenue as EV ownership grows.
