Drivers rush to knock car tax bill to £0 thanks to 'savvy' loophole

Drivers rush to knock car tax bill to £0 thanks to 'savvy' loophole

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VEHICLE EXCISE DUTY (VED) AND CAR TAX CHANGES UNDER THE LABOUR PARTY GOVERNMENT MEAN ELECTRIC VEHICLE (EV) OWNERS NOW HAVE TO PAY THE TAX IN THE SAME WAY AS PETROL AND DIESEL DRIVERS. 09:47,


31 May 2025 250,000 drivers legally avoided paying vehicle tax before April by taking advantage of a loophole which has been branded "savvy" and "smart". Vehicle Excise


Duty (VED) and car tax changes under the Labour Party government mean electric vehicle (EV) owners now have to pay the tax in the same way as petrol and diesel drivers. But EV owners were


able to put off paying for 12 months by renewing their tax before April, regardless of whether it was ready for renewal. Some drivers took advantage of this loophole, saving them having to


pay this year. 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?” READ MORE UK SET TO SIZZLE IN 'GLORIOUS' 27C MINI-HEATWAVE WITH 33 COUNTIES IN ENGLAND HIT The regional breakdown


revealed significant variations in renewal rates across the UK, with Bath leading the way with a 14,534 per cent increase in EV road tax renewals in March 2025 compared to the same period a


year earlier. Falkirk followed with a 7,219 per cent increase, while Darlington recorded a 5,617 per cent surge in renewals. Other areas showing substantial increases included West London


and Paddington with 5,284 per cent, Birmingham with 3,236 per cent, and northwest London with 3,100 per cent. Mr 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 Birmingham secured second place with potential savings of £2.3million, while


West London and Paddington came third with £2.2million. The RAC spoke out and 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."