Question of the week: Can I renew my EV car tax early and get the next 12 months free?

David Ross, Editor
Fri, 07 Mar 2025

Dear Honest John,

"I saw your previous answer regarding renewing Vehicle Excise Duty for an electric vehicle early to extend the free allowance by doing so in March of this year. However, I have spoken to the DVLA and they categorically state that you cannot do this. In fact they say that 2025 rates have not been officially announced yet either. Are either of these statements correct?"

- AA

Dear AA,

As we have previously stated, you can get 12 months zero-rated VED for an electric vehicle if you renew before 1st April 2025. This remains the case.

The important point to note is that you must use the government's online tax renewal service here - https://vehicletax.service.gov.uk/ Although we haven't tried other methods, it may not be successful if you tried to renew at a Post Office.

The system will ask you if you wish to proceed as you are retaxing a car that already has applicable tax, at which point you should continue, as the charge will remain zero if you complete the process before 1st April.

We would not expect the DVLA to confirm this is possible, as it would potentially result in a substantial loss of VED revenue if all EV owners tried to do it. It is also possible that this loophole will be closed, but it will cease to be effective from 1st April in any case.

As for the 2025 rates, as far as public-facing information is concerned the 2025 rates have not been widely publicised by the DVLA, but the DVLA itself issued guidance on the changed to VED rates for electric vehicles on 9th April 2024 which you can read here - https://www.gov.uk/guidance/vehicle-tax-for-electric-and-low-emissions-vehicles

Ask HJ

How much is tax on a car that cost more than £40,000 in October 2024?

I am considering trading in my Subaru Outback Premium registered in March 2016, list price less than £40,000, CO2 emissions 161g/Km. I purchased the car in June 2016 and the vehicle tax on form V149 from April 2024 is shown as £255. Which is what I paid in June 2024. I was considering a nearly new Outback registered in October 2024 with a list price of over £40,000, CO2 emissions 193g/Km. The vehicle tax shown on form V149 appears to be £1650. This is a deal-breaker even without any mention of a surcharge for a list price in excess of £40,000. Can you confirm my interpretation of the form is correct? Now, suppose I purchased a similar car a little older, first registered before April 2024 then the vehicle tax appears to be £190 with a surcharge of £410 for a list price of over £40,000 giving a total of £600? Again can you confirm my understanding of the V149 form is correct?

On your first point, the £1650 rate you quote is the first year rate, the V149 form calls this 'first licence rates', so from year two onwards the VED rate for this car would be £190 (at 2024 rates). The surcharge of £410 would apply to either vehicle if the list price was over £40,000.

Answered by David Ross

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