Drivers urged to make £195 saving with 'free car tax' until 2026

Over one million drivers in the UK are urged to renew their car taxes before March 31 to take advantage of a major loophole and save £195 before tax changes come into effect.

From April 1, 2025, electric vehicles in the UK will be subject to a £195 road tax and added fees if their value exceeds £40,000, as part of new tax policies introduced by Rachel Reeves.

According to car expert Sam Sheehan, drivers can get another year of free road tax if they make sure to act before the deadline.

Sam Sheehan, motoring editor at Cinch, said: "Electric car drivers have long enjoyed free road tax, but that's set to change from April 1, 2025, when electric cars registered between April 1, 2017, and March 31, 2025, will pay the same standard £195 road tax rate as petrol, diesel and hybrid cars."

To complete the renewal, drivers will need their vehicle's number plate and the 12-digit reference number from their V5C logbook.

Sheehan added: "All they [drivers] need to do is renew their road tax on the Government's website before March 31, 2025, by putting in their car's number plate and the 12-digit reference number on their V5C (logbook)."

He explained that the form will prompt them to confirm their decision because, typically, renewing early alters the renewal date, resulting in double road tax payments until the original renewal date.

However, since road tax for electric vehicles (EVs) is currently free, this is not a concern.

New EV purchasers won't have the same advantage, as electric cars registered after April 1, 2025, will incur the standard road tax rate, according to the expert.

If the car costs £40,000 or more, it will also be subject to the expensive car supplement starting from its second year on the road.

Rhydian Jones, Confused.com car insurance expert, said: "Some drivers are being tricked by VED payment requests which are in fact scams and are being warned to avoid these. If you do end up clicking a link from a scam email or text, you could end up losing a lot of money.

"Always be vigilant, your car tax needs to be renewed once per year and drivers can use our tax checker tool to see if their car is taxed and how long it has left.

"If you do end up clicking a link from a scam email or text, you could end up losing a lot of money. Always be vigilant, your car tax needs to be renewed once per year and drivers can use our tax checker tool to see if their car is taxed and how long it has left.