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07:48, 31 May 2025 Drivers have managed to beat Rachel Reeves' expensive car tax hikes by using a clever loophole. Since April 1, electric vehicle owners are required to pay Vehicle
Excise Duty for the first time, it has been warned. While electric car drivers have until now benefited from zero VED costs, from April they are being hit with an annual standard rate of
£195 - the same paid by drivers of recent petrol and diesel motors. However, if you are an electric car driver, there was an easy way to evade the £195 car tax sting for a year. Drivers were
able to take advantage of the current VED exemption for fully electric cars by taxing their existing car early before 1 April at no cost. READ MORE FOREIGN OFFICE ISSUES
'IMPORTANT' WARNING FOR UK TOURISTS 'WHO HAVE HEALTH CONDITION' Motorists can renew tax on their car in any month they want, no matter when when it is due to expire. EV
drivers - who currently enjoy VED-free driving - will then incur no additional cost if they tax their car by 31 March, even if their current taxation period isn't due to end for months.
Article continues below By re-taxing their EV online before 1 April - using the car's registration number and reference number from the V5C log book - drivers can enjoy tax-free
motoring until March 2026. Sam Sheehan, motoring editor at cinch, said: "Such a big increase in renewals shows just how many EV drivers might have got themselves another year of road
tax-free motoring, and who wouldn't want to save £195 if they had the chance?" Sheehan added: "It goes to show how savvy EV drivers were ahead of the road tax changes and how
useful consumer advice led to savings for so many people." Article continues below The RAC explained: "Road tax is calculated based on emissions levels, and those with higher
levels will pay more each year. This is because they contribute more to pollution and environmental impact."