Are people ‘taxing’ EVs early?

Are people ‘taxing’ EVs early?

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Discussion

Bobtherallyfan

Original Poster:

1,344 posts

85 months

Tuesday 26th March
quotequote all
Seen lots of Twitter activity saying EV drivers are taxing their cars over three months early to basically move the VED year forward..thus in theory meaning that in March 2025, they will tax at the existing NIL rate for another 12 months. This seems odd to me as the renewal date for ICE is fixed in stone unless you SORN it and then start paying again. Is this a known loophole EV people are exploited or are the Twitterites talking nonsense?

MitchT

16,240 posts

216 months

Tuesday 26th March
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Would it even work? Surely if you tax your car three months before the zero rate is due to be abolished then you'll pay an annual amount which relfects three months at the zero rate and nine months at the new rate? It certainly works that way if you tax a car that's due to drop the additonal rate for £40k+ cars during a VED year - you pay an annual sum equal to the relevant amount of months at the higher rate and the relevant number of months at the lower rate.

TheRainMaker

6,628 posts

249 months

Wednesday 27th March
quotequote all
Bobtherallyfan said:
Seen lots of Twitter activity saying EV drivers are taxing their cars over three months early to basically move the VED year forward..thus in theory meaning that in March 2025, they will tax at the existing NIL rate for another 12 months.
I don't think it works like that.

You tax it for 12 months and they just add the months which you should be paying VED for.

TooLateForAName

4,841 posts

191 months

Wednesday 27th March
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Are they declaring sorn first to reset the date tax is due?

georgeyboy12345

3,645 posts

42 months

Wednesday 27th March
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Won’t the higher tax rates just be on new EVs sold after 2025?

oop north

1,615 posts

135 months

Wednesday 27th March
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TooLateForAName said:
Are they declaring sorn first to reset the date tax is due?
Yes, I believe this is what people are doing

The tax renewal is a bit of a joke - I had a leased ipace that did not benefit from the removal of the £400 extra until a year late because the lease company renewed in March and so the cost was at the old rate.

If you renew in March next year it will be at the old rate, but an April renewal will be at the new rate. There is never any x months at old and 12 - x months at new

Murph7355

38,941 posts

263 months

Wednesday 27th March
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georgeyboy12345 said:
Won’t the higher tax rates just be on new EVs sold after 2025?
Nope. All of them.

page3

5,019 posts

258 months

Wednesday 27th March
quotequote all
oop north said:
TooLateForAName said:
Are they declaring sorn first to reset the date tax is due?
Yes, I believe this is what people are doing

The tax renewal is a bit of a joke - I had a leased ipace that did not benefit from the removal of the £400 extra until a year late because the lease company renewed in March and so the cost was at the old rate.

If you renew in March next year it will be at the old rate, but an April renewal will be at the new rate. There is never any x months at old and 12 - x months at new
No SORN necessary.

You can re-tax a vehicle any time, just you lose what you've paid for the current year (which is nil for an EV).

For example, my tax was due 1st September 2025. Re-taxed and now it's due 1 March 2025. That'll save me a bit... probably.

Mark-ri571

604 posts

114 months

Thursday 28th March
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The tax on my Mini SE was due end of June 2024 but I retaxed at £0 yesterday so that renewal now due 1st March 2025. Hopefully when I renew in March next year I will get 12 months at £0.
Thursday 28th March
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Been driving EVs tax free since 2012 so it's a swine that shortly it'll cost more to tax an EV than a small fossil car! frown

I've just renewed the tax on my Honda E. It was due in August this year, which would have meant I would have had to pay VED for the first time in August 2025 at whatever rate (£190?) prevails. Hopefully I've now pushed that first payment on till Feb 2026.

While renewing online there's a bit which implies you can only renew early if told to by the DVLA. I ignored that and the process went to completion OK.

The DVLA computer must be flagging up all these early EV road tax renewals and the commensurate loss of dosh to the Exchequer. Wait for the inevitable ban on early renewals for EVs without a change of ownership laugh

NDA

22,345 posts

232 months

Thursday 28th March
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VED is still based on emissions - they'll need to sort that out I would have thought.

I have one car that's £35 a year, another that's £695 and a Tesla - which is going to cost more than one of my petrol cars.... based on emissions.

Truth is, I think EV's should pay road tax - they use the roads. But the system seems a bit odd.

HTP99

23,310 posts

147 months

Thursday 28th March
quotequote all
NDA said:
VED is still based on emissions - they'll need to sort that out I would have thought.

I have one car that's £35 a year, another that's £695 and a Tesla - which is going to cost more than one of my petrol cars.... based on emissions.

Truth is, I think EV's should pay road tax - they use the roads. But the system seems a bit odd.
Only if the car is registered before April 1st 2017, apart from the first year VED which is still based on emissions.

Murph7355 said:
georgeyboy12345 said:
Won’t the higher tax rates just be on new EVs sold after 2025?
Nope. All of them.
Not all EV's will be hit retrospectively with VED, anything registered prior to April 1st 2017 won't be.


Edited by HTP99 on Thursday 28th March 12:09

James6112

5,435 posts

35 months

Thursday 28th March
quotequote all
Four Seasons Total Landscaping said:
Been driving EVs tax free since 2012 so it's a swine that shortly it'll cost more to tax an EV than a small fossil car! frown
…..
laugh
My large fossil car (diesel) has been £30/£35 tax since 2014. 60+mpg. Under £300 full insurance. 650+ mile range, saw 800 once.
Best/longest i’ve owned a car (60s)
I’ll get a BEV when it finally dies though!

interstellar

3,790 posts

153 months

Thursday 28th March
quotequote all
James6112 said:
Four Seasons Total Landscaping said:
Been driving EVs tax free since 2012 so it's a swine that shortly it'll cost more to tax an EV than a small fossil car! frown
…..
laugh
My large fossil car (diesel) has been £30/£35 tax since 2014. 60+mpg. Under £300 full insurance. 650+ mile range, saw 800 once.
Best/longest i’ve owned a car (60s)
I’ll get a BEV when it finally dies though!
What is it?

robbieduncan

1,989 posts

243 months

Thursday 28th March
quotequote all
Just did mine

Gone fishing

7,471 posts

131 months

Friday 29th March
quotequote all
Murph7355 said:
georgeyboy12345 said:
Won’t the higher tax rates just be on new EVs sold after 2025?
Nope. All of them.
Wrong

Existing EVs will only pay the base rate. The premium/luxury/expensive car tax will only apply to cars registered from April 2025. The rules are quite clear

JustGetATesla

335 posts

126 months

Friday 29th March
quotequote all
I've done mine...

andy43

10,616 posts

261 months

Friday 29th March
quotequote all
Four Seasons Total Landscaping said:
Been driving EVs tax free since 2012 so it's a swine that shortly it'll cost more to tax an EV than a small fossil car! frown

I've just renewed the tax on my Honda E. It was due in August this year, which would have meant I would have had to pay VED for the first time in August 2025 at whatever rate (£190?) prevails. Hopefully I've now pushed that first payment on till Feb 2026.

While renewing online there's a bit which implies you can only renew early if told to by the DVLA. I ignored that and the process went to completion OK.

The DVLA computer must be flagging up all these early EV road tax renewals and the commensurate loss of dosh to the Exchequer. Wait for the inevitable ban on early renewals for EVs without a change of ownership laugh
Just done exactly the same on our E. Was due August, now due the following March.
Nice one!

lost in espace

6,300 posts

214 months

Friday 29th March
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Am I right in saying if I got my brand new e:ny1 last week that it will renew on 1 March and therefore at £0 in March 2024.

RM

630 posts

104 months

Friday 29th March
quotequote all
lost in espace said:
Am I right in saying if I got my brand new e:ny1 last week that it will renew on 1 March and therefore at £0 in March 2024.
Check it on the DVLA site, mine is due 1st April 2025 so will be charged not free.