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Road tax -no savings with EV after all

(32 Posts)
Mollygo Sat 26-Apr-25 09:08:01

After being told that EV would be road tax exempt, I learn that from now on,

EVs registered on or after April 1, 2017, will pay the standard annual rate of VED, which is currently (April 2025) £195 per year.

Older electric vehicles registered between 1st March 2001 and 30th March 2017 will be subject to the reduced rate for older vehicles of £20 per year, same as my DD’s i10.

Newer EVs registered after 1st April 2025 will pay the standard annual rate, and if they cost over £40,000, an additional £425 “expensive car supplement” applies from years 2–6.

argymargy Sat 26-Apr-25 09:22:50

Well I've driven an EV for 7 years without paying any tax, so they WERE exempt. Nothing stays the same (as older people we already know that).

M0nica Sat 26-Apr-25 09:23:12

Surely no one doubted that sooner or later electric cars were bound to be taxed. Be thankful that it is as far away as 2027.

Motorists using convenytionally fuelled cars make a substantial contribution to the nations bank account through Road fund licence, fuel tax etc. If this money is lost, it has to be replaced, the obvious source is electric cars.

granfromafar Sat 26-Apr-25 09:28:01

Yes, but we have been saving for all the previous years that we've owned them, and continue to save by not having to buy petrol or diesel in the future. The cost of paying for the electricity is so much less than for other fuels.

escaped Sat 26-Apr-25 09:39:21

Good point granfromafar. I only bought mine in March this year and I've saved a heck of a lot driving round and spending a month in France.

Mollygo Sat 26-Apr-25 09:44:13

M0nica

Surely no one doubted that sooner or later electric cars were bound to be taxed. Be thankful that it is as far away as 2027.

Motorists using convenytionally fuelled cars make a substantial contribution to the nations bank account through Road fund licence, fuel tax etc. If this money is lost, it has to be replaced, the obvious source is electric cars.

Exactly.

Whitewavemark2 Sat 26-Apr-25 09:46:19

EV cars use the roads. Think of it as payment for the roads upkeep.

Visgir1 Sat 26-Apr-25 10:09:44

Always thought they pay some form of Road Tax, they use the roads.
They contribute to the general wear and tear of the road infrastructure same as any car.

Lovemylife Sat 26-Apr-25 10:23:02

Electric cars actually cause far more potholes and damage to the road than conventional cars, so it seems only fair that road tax is paid on them.
Some multi storey car parks are also at risk as they were not designed to take the extra weight of EVs

rosie1959 Sat 26-Apr-25 10:30:39

Seems sensible that all vehicles that use the roads pay road tax although by the state of the roads you wouldn't think anyone did. I don't particularly agree with the expensive car supplement. Expensive cars do not use the roads any differently from cheaper ones, so why are they taxed more?

RosieandherMaw Sat 26-Apr-25 10:30:54

It was an incentive to encourage people to buy EVs - like an introductory offer.
Those days are gone!

Mollygo Sat 26-Apr-25 10:55:14

rosie1959

Seems sensible that all vehicles that use the roads pay road tax although by the state of the roads you wouldn't think anyone did. I don't particularly agree with the expensive car supplement. Expensive cars do not use the roads any differently from cheaper ones, so why are they taxed more?

Presumably because they think if you can afford the car, you can afford the cost.
It didn’t make sense to me either and I didn’t find any explanation.

OldFrill Sat 26-Apr-25 11:04:51

It's the list price, not the cost price that shoves cars into the luxury tax bracket, so beware if you buy at a discount you may have to pay the extra tax.
Road tax goes into the general tax pot and isn't solely used for road maintenance.

MaizieD Sat 26-Apr-25 11:30:35

OldFrill

It's the list price, not the cost price that shoves cars into the luxury tax bracket, so beware if you buy at a discount you may have to pay the extra tax.
Road tax goes into the general tax pot and isn't solely used for road maintenance.

There is no such thing as 'road tax', it hasn't existed for decades (since 1937 grin ).

www.bbc.co.uk/news/uk-england-london-41212379

OldFrill is right...

Casdon Sat 26-Apr-25 13:27:49

I think the principle of taxing vehicle owners is okay because they use the roads, and it doesn’t really matter if the payment goes directly towards maintaining roads or not. Government funds roads, whether directly or indirectly, I just wish they would allocate more funding to bring them back up to scratch - what I really object to is vehicles being damaged, and accidents caused, due to potholes.

OldFrill Sat 26-Apr-25 13:31:14

MaizieD

OldFrill

It's the list price, not the cost price that shoves cars into the luxury tax bracket, so beware if you buy at a discount you may have to pay the extra tax.
Road tax goes into the general tax pot and isn't solely used for road maintenance.

There is no such thing as 'road tax', it hasn't existed for decades (since 1937 grin ).

www.bbc.co.uk/news/uk-england-london-41212379

OldFrill is right...

I simply used "road" tax instead of "vehicle" tax as it's in the OP's title. Many folk still think it's used for road maintenance.

FriedGreenTomatoes2 Sat 26-Apr-25 13:33:33

With all the potholes around that account must be building up nicely. 😂

Mollygo Sat 26-Apr-25 13:34:06

Old Frill I never gave it a thought. We usually call it car tax.

M0nica Sat 26-Apr-25 15:51:25

rosie1959

Seems sensible that all vehicles that use the roads pay road tax although by the state of the roads you wouldn't think anyone did. I don't particularly agree with the expensive car supplement. Expensive cars do not use the roads any differently from cheaper ones, so why are they taxed more?

Exensive cars are usually bigger and heavier than other cars so cause more damage to the roads, in the same way electric cars with their very heavy batteries do.

They are also too big for many car park spaces and make manouvreing round car parks much more difficult for those of us with more modestly sized cars.

David49 Sat 26-Apr-25 21:01:56

The incentive has turned round now, taxation on new petrol cars has been increased, particularly large ones

sazz1 Sun 27-Apr-25 14:13:29

This Labour government is taxing as many things as it can. It's a disgrace

Mollygo Sun 27-Apr-25 14:16:24

sazz1

This Labour government is taxing as many things as it can. It's a disgrace

It’s a problem if you said you wouldn’t raise taxes.
But like every government I’ve known, they’ve been left with a terrible amount of debt by the previous government, of which they were unaware whilst in opposition.

David49 Mon 28-Apr-25 06:26:42

sazz1

This Labour government is taxing as many things as it can. It's a disgrace

We demand a better NHS, better care services, cleaner water, now the US wants to stop defending Europe, so higher defence spending, yes taxes are going to rise.

The sooner we accept that the better.

Grantanow Sun 04-May-25 12:05:26

I'm not entirely convinced by the black hole story. Public finances are public documents available to Parliament. On the EV point if you can afford a new EV you can afford the tax.

Mollygo Sun 04-May-25 13:52:42

Grantanow
I agree about if you can afford a new EV you can afford the tax. afford the tax,
But EV’s double selling points were that you were nobly saving the planet and saving some money on tax for yourself.
Both of those statements are now either questionable or wrong.