@@BrianSmith-zs5wg Wholesale electricity prices have been going into the negative in some parts of Europe recently. Even in the UK there have been some people on flexible tariffs paying nothing for electricity for short periods of time due to excess supply.
If only we’d nationalised oil and gas like the Norwegians and we had our own sovereign wealth fund. Unlikely to have £1.4trn like the Norwegians but it could have been a nice pot for us all to argue over! Alas the free-market/Thatcherite government dogma was just gearing up.
I've already re-taxed my EV in march this year, the original registration was in September so you can do it just go on the web site. You would normally forfeit any tax already paid but as it's zero no problem
Exactly, this is just another video from Dave with incorrect information. Same goes for the comment about pro-rating the higher charge for the period after 1st April, that will not happen, it has never happened in the past either for those renewing just before the new rates cut in.
Both my EVs were on different dates ; I reset them (and missed out on a zero refund) so they both expire now on 1st March 2025. Just in time for the new tariffs. Yum....
Previously you just declared your car sorn today (tax is refunded for remaining whole months) then tax it again using the v5 number. If we did this in march we’d get a year of zero road tax
You can voluntarily tax it any time online, you're warned that it may cost. I've done it, clearly you haven't :) Tax it using the V5 reference, it's all very simple, you're not correct there at all. Road tax has never been prorated, it's always the amount that you pay on the day.
Agreed. I retaxed mine back in March, so my tax is next due 1st March 2025 (so "payable" - £0 - in February 2025). This effectively delays the first actual payment by about 11 months. 🙂 I'm not sure though whether Gov have made any changes since then to try and close that loophole.
Dave, there are two different numbers you can use to tax your vehicle. One is the number given on the reminder. The other is the document reference on the V5C Logbook. Taxing your car has never been pro-rata based on the new rate and the old one. You tax based on the rate when you tax the vehicle. In the case of EVs at the moment it's zero. You can retax at any time by forfeiting the existing tax. There are 2 ways to do this. Either SORN the vehicle and immediately re-tax it, or just retax it using the V5C reference. Either one forfeits the existing tax immediately.
Interesting idea, and I can see the idea working in principle, but it would mean every single EV owner being able to get 12 months free road tax and I cannot believe that will happen. I agree that the proportional pricing has not been used in the past but this is not a price change, it is the start of a totally new taxation policy. You may be right and I might well try it, but I hold out no hope it will work. Are you going to do it? You could do it right now as that would take you past the 1st April 2025 start date? Dave
@@davetakesitonIf the pro rata charge was true, anyone taxing an EV in July 2024 (today) would surely be charged 3 months for April - June 2025 after the change comes in. They’re not. It will only apply for tax purchased after April 2025. The only potential change I can foresee is closing the loophole allowing you to tax an already taxed car to change the date of the next renewal. If EV owners do this in March 2025 they won’t pay until their renewal in March 2026 as it stands.
Not quite. If you SORN, you have to wait a few days. I did two cars last March, my EV and a petrol one because that one was going to go up quite a lot too. SORN'd for a few days first on the petrol one, EV just retaxed.
@@djtaylorutube You don't need to SORN them. You just re-tax using the number on your V5. It will tell you the cost of another 12 months of Tax, (which I suspect is still £0) and will warn you not to pay, as you are already taxed. You just ignore the warning, pay £0, and are then told you are taxed for another 12 months.
@@chrisp7839 Yes I know. I had to SORN one because it was a petrol but had to wait a few days to retax online, immediate retax online option is not available if SORN'd. The EV, no, just retaxed.
My last car was ultra low emission diesel owned it for 9 years, bought an EV 18 months ago my car tax runs out on the first of March 2025, so 11 years not paying car tax I’m not really bothered about paying £190, driving an EV is the best experience ever.
@@JasonKing-m6m Yawn.... I've never seen a fight or even a mild disagreement over a charger other than when selfish ICE drivers decide to block a charger so they can be 2 feet closer to the shops. I have however seen a fight at a petrol station over fuel. th-cam.com/video/sL8_sJK9Up0/w-d-xo.html
A good point. Must tell my petrol head friends never to buy an EV because they are correct EVs are rubbish....Don't want chargers blocked, do we@@JasonKing-m6m
@@JasonKing-m6m Who uses public charge points ? Fill up at home every night. If I want to go to the coast, I drive there and back without needing a charge.
My tax is usually payable in April. This year i paid it in March thus resetting my calendar to a March renewal. When i did this i was actually warned that i would be losing out on a month ! Anyway, when i renew next March I beleive I'll pay the current amount at that time, zero. So Ive gained a year, saving £190 AIUI. Theyve never done the pro rate method you believe will happen, after all road tax rates have changed before , being notified in advance, and weve always paid the rate applicable at the time not a pro rated version.
Yes we are taxed higher for public charging, but when you consider how much revenue is earned on petrol and diesel tax, it is obvious that EV owners will have to be taxed more in the future as ICE vehicle numbers reduce
Which is considerably less than the fuel duty on petrol & diesel @ 52.95p a litre. Then there is VAT @ 20% as well. So as EV drivers we are far better off. So keep that one quiet.
@@peterjones6322it won't be through a tax on the electricity. Road pricing is more likely. Should remove the last ICE cars from the road as they'll pay that on top of their fuel tax.
@@peterjones6322 Whilst the tax element on public charging could be increased it probably wouldn't be enough to make up for the lost revenues on petrol/diesel sales. It would be difficult to increase tax on domestic electricity to make up the difference as that would impact on too many people regardless of whether or not they drive. Some sort of road usage payment is more likely, this would be picked up by the MOT and will probably mean that even cars under 3 years old will also have to go for an annual inspection.
Dave, you are wrong again. I taxed my car online early this year without any problems or error messages which you described. It was taxed in March 2024, 8 months in advance of my due date. My first road tax payment will now be in March 2026, not December 2025 which it would have been. That adds an additional 4 months of free road tax.
Not sure your road tax information is completely correct. I registered my ev for road tax early as I'm away round that time. Didn't have the renewal form or number. All you need is the reg and the number off the v5c document. Mine goes for a year and they've not prorated it. £0 cost for 12 months.
Hi Dave, I drive a salary sacrifice BEV, which for me is extremely economical. I pay a reasonable amount every month (lower than the loan payments on my old PHEV) and I do most of my charging at home using an overnight tariff. So extremely economical. I don’t know how this will affect me. I suppose I’ll be paying the same tax as ICE cars. The expensive car thing will probably hit me, let’s face it many if not most current family size BEVS cost over £40,000. I guess my lower charging costs will compensate to certain extent. I hope this will incentivise manufacturers to build more family BEVs that cost under £40,000.
Living near to London, i used to be able to drive into Central London for free (no congestion charge @ £15.00 per day), that changes at the end of De '25. To park in City of Westminster, which is basically all of the centre used to cost at a meter £1.00 odd for four hours, as of April that went upto circa £20.00! So those EV drivers like me who used to take advantage of all these benefits including free RFL, are all getting charged, which is much the same as when the Government told everyone to buy diesel, and now for older cars gets them on RFL, and in London - ULEZ at an additional £12.50 per day, and in most areas an even higher charge for on street parking. The motorist is an easy target!
The problem with London is congestion. Whenever I go inside the M25, which is about once a year, I park near an underground station and use that. Far quicker to get around!
Insurance for EV's isn't any more expensive (really)! They have gone up for Tesla's because they are in the 'luxury' car sector and have high performance! My 15 yr old Golf was £340 for a year. My E-Niro was £440 for a year. The E-Niro is valued at £16k more than the Golf (no longer mine) which I'd say was proportionate!
@@computerbob06 I generalisation… my insurance on a Tesla model Y RWD is £1800 with 9NCB - middle aged man . And it’s only going to go up every year. My hybrid Lexus before this was 600 quid.
@@issiewizzie Teslas and every self drive cars are more expensive because there are some stupid drivers that put it on auto and sleep on the driver's seat. One more reason is that they are stupidly high powererd and that is a big no no for insurance companies.
@@issiewizzie I'm 50+ with no claims for 20 years. My Tesla model 3 was £280 in 2023 - but this year 2024 went up to £460. So don't know why you ended uppaying what you did. p.s. On average all insurance went up by 50% last year -including ICE. So I would have expected my insurance to go to £420...so £460 not too bad
What is the incentive to by a EV if you have to pay standard tax £190? I would have stuck with my diesel for another 2-3 years. Im cheesed off😮 There's is no rush to by a EV if this is going to happen next year
We were always going to be taxed , where you save money is on running costs and fueling your EV . In a few years time price parity will happen with Ice cars , then if you sit down and do the maths it will be just cheaper to run a EV , but I can foresee in a few years time more tax being put on petrol and maybe road tax on Ice cars as they try to speed up the transition.
I feel the wealth tax on EVs will kill off any incentive folk may have of buying an EV. Although there are quite a few brands that sell for under 40k, there will be be a time when all reasonably sizes EVs will be priced over 40k. I don’t mind paying road tax,but I do resent the wealth tax🙈🙈
Bought my car in May and last year moved the Tax back to March with no problem. NO you do not need the number on the form the website "talks" you through it. Bit late now though. So I will get 10 mths free. [Lost 2 months moving backwards] rather than hitting renewal at May it is now March 25. ie before the change. We will see if you are right I doubt it re the spread concept as it is too complicated. Previously any cost rise in April was only charged from April so it would be a completely new concept for the Tax. I really did it for the "expensive Car" addon as it was not clear when they brought it in if that would be applied retrospective. That was the main reason I bought a BEV rather than a PHEV at the time. At least now you can actually buy a BEV for less than the magic £40k.
Its Vehicle Excise Duty (VED), the money goes into the pot. It’s no longer a road fund licence. We pay excise duty on beer, wine and spirits, the excise duty collected isn’t used to fund the upkeep of pubs or building new ones, I wish it did :-)
My view from abroad. Sounds reasonable. In Sweden, all ultra low emission vehicles pay SEK 360 per year. (Divide by 10 to get an approximate figure. Less than £36 or €36.) Check Google for a more accurate rate. The only thing that differs is that when I had a hybrid, it counted as ultra low emission. I don't know if plug-ins still do or not, but my EV does. And if the old car was ultra low emission, the tax hasn't changed for the old car. I say as you, Dave, it's probably not gonna last forever. Have a nice day.
Hi Dave I tax my car early back in March and as you said you need a reference number to do this but you can or could just use the number on your V5 which is what I did, so now it will be due for renewal in March 2025
No real surprise as you say. The Government(s) were/are not interested in incentives to help expand the EV market anyway. I’ve had 7 years of not paying road tax so not grumbling.
Simple. You can retax your car whenever you wish you get a warning on DVLA site that states ypu will lose money on your existing road tax, but it doesn’t matter on an EV because it is zero. So you may have 10 months of zero EV tax but you CAN tax it for 12 months again today. I did this. My tax now runs out at end of February 2025, so I will be taxing my EV for 12 months at £0 for 1st March 2025
It’s the £40,000 ceiling that I have an issue with. Given the rate of inflation for the past few years, it’s hardly what you’d call ‘expensive’ particularly as most sales are PCP / Lease and you don’t have to be earning a fortune or be ‘rich’ to afford the monthly’s on a 40-50, even 60 grand car if you shop around. This needs to be increased to at least 50 if not 60,000 to account for the shift in the car price median, particularly when you look at EV pricing.
Tesla will react, they did in America, to get some of their range under the threshold for incentives. In UK Model 3 is already £39,995. Watch out for a sales campaign for Model Y
Absolutely right Dave. A tax for all owners and may iron out the confusion of pricing of roads. I was laughing when folk suggested early taxing. You come back to us if that myth really works.
It does work. Many of us have done it. Why don't you try., It you are right, and its prorate, then the website will ask for a charge now to cover the period after April 1st. If not, you pay £0, and are told you are covered for the next 12 months.
It does work but you need your road tax to run out at the right time. Paying twice for one month to gain 11 months of discount makes sense. Most people cannot be bothered. You do not need a reminder.
So if i understood correctly, if i went out and purchased a used car, maybe 2-3 years old, and the original value exceeded the 40k mark, as long as you get ot before 31st March, you will be exempt from paying the premium car tax?
I had 2 electric cars. You pay more for them, maintenance you get charged more. Car insurance is higher when I asked why, the answer from insurance, they do. They are cheap on my home charger, but cost more than a diesel car on rapid chargers if you don’t have a home charger. The RFL is fare, however. If you have a polluting Renault 1.5 diesel 2012, you pay £20 a year. So yes, only fare to charge EVs,but everybody who uses the road should pay the same minimum RFL not pollute more and pay less.
Dave, you clearly have an issue with "Rich" people owning an EV and somehow getting away with incoming car tax charge. It was very naive to think EV drivers would be exempt for ever from car tax, the writing was on the wall when the government got rid of the EV discount. But you've had it good for a number of years.
Not sure if it's exactly the same, but here in Norway we got a road traffic insurance tax. Basically a daily rate as long as the car has the plates on, or technically just activated. It is paid as part of the insurance so its fairly simple. They changed the rates after March 2024 so that EVs pay a bit more than fossils, probably to offset the fact that they don't get any fuel tax from them. Petrol and diesel with DPF pay 7.6 NOK/day and EVs 8.7 NOK/day. So with this system we can just log on to the public roads administration website and register or unregister the car as we like. The minimum required insurance will be activated or deactivated automatically as well I believe. If you've got full coverage you'll still pay the optional part of the insurance. Some people do this for cars they only drive in summer, like veterans and such.
I think it's likely we will move to a similar system in the UK at some point but based on mileage. There is a big stigma around the pay per mile tax that upsets the knuckle draggers when the Daily Mail tells them to be angry. They completely miss the fact that fuel duty IS a pay per mile tax as is the insurance premium tax at 12% we already pay. Likely they will just add more on that. When you buy your insurance you tell your insurer how many miles a year you will do the more miles you drive the more you pay for insurance. The more you pay for insurance the more you pay in IPT.
@@nervousfrog101 Insurance premium is the same here as well. You pay based on how many km you want to pay for per year. I've usually selected 8 or 10k per year, but then I don't drive much. When I increased it from 8 to 10 this year it cost me another 750 NOK or something. Depends on coverage as well I believe. And as its a 2020 e-Golf I got full coverage still.
@@brianbottomley7000 Why would he want to sell, the cars last for many years,. And if you do sell, remember that now its cheaper to buy a used EV than a used ICE car. That's the other side of the depreciation event.
I SORNed my EV on the last day of February this year and re taxed it for 12 months on the first day of March. That way, my renewal will be March 2025. You can SORN on line but to re tax online you have to leave a few days. You can re tax straight away by going to a post office. Do the same on the last day of Feb 2025 and make the most of the last £0 rated VED rate on your EV.
UK is weird with this tax... I have a question. How does the UK view the 40k price tag? The price of a new car. I understand. How about for a used car, the average price of a used car?
I taxed my Zoe in march before it was due in June using the Ref number on my V5. If like me you have owned the EV from new then every year in the same month then Tax , Insurance, and extended warranty will be due making that an expensive month . Changing the Tax to a different month would help anyway.
I have been questionning this since the Autumn 2022 budget and also wrote to my Local MP. After many months, March 2023, I finally had a reply. part of this quoted the following "Cars with a list price when new exceeding £40,000 pay an additional supplement for five years as well as paying th stanndard rate of VED, which means those whoc can afford the most expensive cars pay more than the standard rate paid by other drivers. As around 80 per cent of all new cars have a list price in excess of £40,000 the Government considers this threshold to be suitable way of distinguishing the more luxury end of the market." I was amazed that the luxury part applied to 80% of cars at £40,000. I am happy to pay a basic VED but feel that backdating this was wrong as it leaves diesel drivers paying as little as £20 where most EV owners will be paying £190. I feel re the backdating, they should have done this with all vehicles and redone the whole system as from a certain date. We also know that many vehicles emissions were far higher than quoted, so this should also be updated, maybe based on the MOT emissions test? Interestingly some articles indicate the luxury tax will also be applied to the older EV's where it is still with 6 years of age. I was happy that Tesla had the Model 3 RWD at £39,990 so can avoid that one! I do think EV's should have had a higher figure for the luxury car tax, as we are helping to move with their eco plans, but there we go.
Dont forget that the £40,000 threshold is not the price you pay for the car but the list price including all extras such as different paint, sunroof, etc.
Some high efficiency diesels like the 15 year old Fiesta Econetic that I'm about to sell have £0 tax, and will keep that. Just in the process of replacing it with a 4-year-old 90k mile E-Niro (hopefully a bargain at £12500).
@@Tim_Small I had a Kia E Niro 4+ for the last 3 years on a lease and moved from an Audi Q5 S Line. The Kia was fantastic and I didn't look back! Charging at a fast charger actually worked well fwith a stop for food and drink, around 40-45 minutes to be back to 80% on a long road trip. That seems a good deal so enjoy it and get a cheap overnight tariff to charge at home.
I actually think the so called Luxury rate should be £50K now as many 'family' cars these days list price, no matter what the propulsion is, is over £40K!
That was interesting and informative thanks, but I will be surprised if you are right about dodging the (5 year) expensive car tax (ECT) by buying before the break date. But! You might be right taxes move in mysterious ways on occassions. One thing about ECT not covered which EV drivers might want to be aware of, is that final list price in relation to the ECT. If you go for a model that has an advertised list price of say £39,800 you can't be sure it wont get slapped with ECT. Simply because the advertised list price may not be the final price if you order it with say, metalic paint costing £201, or maybe one you are looking at in showroom has metalic (or some other extra), because metalic paint at say £201 would up the cost new to £40,001 you will pay the ECT. Anything fitted to a car before delivery which takes the advertised list price over 40k means it is then in the ECT territory.
When I bought my Golf sized EV in 2022, I ensured I kept the price under the £40k "luxury" car tax limit just in case 😁. I did compare the EV against an equivalent VW Golf, it was ~£5k less expensive, but I went with the EV anyway 😂. But, the £40k limit has been subject to "fiscal drag" due to inflation. In reality, it should probably now be £50k. That's not going to change anytime soon 😂. Most "family" EVs are over the £40k limit, so that might really impact EV sales going forward !!! How does that effect me, well assuming battery degradation isn't too bad I'll just keep my existing car, so NO new EV car purchase for the foreseeable future and NO well looked after EV on the used market - the government can't force me to buy a new EV - screw them 😂.
Hi Dave. Thanks for the informative posts. On the subject of car tax, there is, in reality, a 'pay per mile tax'. The tax paid on a litre of ice fuel is 80-90p so the more miles you do, the more fuel you use so the more tax you pay. This is another area the Government needs to address as the loss of revenue from ev's is going to be truly staggering. Any thoughts?
Just did a few calculations and the annual LOSS in revenue, only counting ev's currently registered and even after them ALL paying £190 car tax is over £626,MILLION! Stand by for further tax raising ideas from the government aimed at EV users.
I have no problem at all with paying the same amount of tax as everyone else but am I correct in thinking that hybrid cars will still receive a discount? If so then is doesn't seem fair at all as they still produce emissions where full EVs do not.
Just answering a question - The way that was suggested regarding taxing an EV early was to SORN it for a day and then re-tax it. Thus avoiding having to tax an already taxed car.
The government yet again benefitting from fiscal drag. The luxury car tax figure set in 2017 needs to be linked to inflation, it's pretty outrageous they get away with setting a static figure. If it was properly valued this would be 52k by now. 40k no longer buys what could be considered a brand new luxury vehicle.
No need at all, just retax and pay the exhorbitant £0 and no refund of any part of the previous £0. Plenty of us have already done this, unfortunately Dave hasn't and is a non believer. 😊
I just renewed my tax for year 2 on my Tesla Aug 24 to July 25 and it was a £0 tax so I don’t believe the cost is prorata, however I suspect the way it works is the last year I will pay 12 months even if it’s only ‘covering’ 2 months of year 6 and 10 months of year 7
In Denmark all aspects of cars are heavily taxed! The purchase price is taxed by 50%-150% and on top of that additional 25% VAT Then there is a yearly tax for owning a car, it is depending on CO2 emissions an is 90£ (mostly EVs) to 565£ for a normal gasoline car to much heigher for a very inefficient car. Then the Petrol/Diesel tax is about 100% (depending on type and bio content) plus 25% VAT and it will increase each year far into the future And they are planning to add some roadpricing depending on km and area
Actually there are exceptions. Citroen Ami will still not pay VED after April 2025. ie L6e quadricycle falls outside electric car definition and will remain exempt -: Latest info from HM Treasury. Also road tax was abolished in 1937 in the UK. There has been no such thing as road tax since then.
I’m happy about that because I’m considering ordering an Ami as I only drive around 2 miles each week. The only other slight issue is the insurance seems quite high.
For cars first registered after 31 March 2025, if they are over £40k there will be an 'expensive car' supplement to pay. So, based on current rates that would be a total of £600 (£190+£410) for five years. After the car is 5 years old, the expensive car supplement is finished so not such a big deal.
Excellent point. Dave you omitted to point this out to the majority of EV owners. I thought the government was supposed to be encouraging EV ownership!
Historic vehicles, over 40 years old will remain tax free after April 2024. So a 1983 Porsche 911, 1983 Dodge Ram or in my case a January 1984 corvette are all tax free. Also you can tax a vehicle online without the reminder, you just need the reference number off the V5 registration document.
Dave, You might have covered the subject of battery health. If not maybe you would like to geek out on this. How good are the Apps? How good is the read out from the Can bus? Is it true to say that early cars had say 45kwh batteries with 39Kwh useable and that the useable bit is offset by the battery size ie after two years you have 100% 39kwh useable but a battery size of say 43kwh. Do different manufcturers treat battery health in different ways? Can you access the near full battery size via software ? Some of the better used EV car companies give battery health info as part of the sale ie Go green Autos of Radstock. How reliable are these tests? I think there might be a 12 minute geek out on the subject of how to check battery health. How to charge and when to charge. I try to keep at about 70% ie use 20% a day and top up at the cheap overnight rate. My EV is 41/2 years old 36k miles and I think 100% battery. Say two near identical cars, similar mile, one 100% and the other 88% what would the price difference be? Just some thoughts for Utube video. I think you might be right about the £0 tax. Seee LLM Perplexity vis LLM Chat GPt 4 Omni.
This is how it works.. I bought the car on October 3rd 2023 so was originally taxed until 30/09/24 however I re taxed it to the end of February 2025 . “✓ Taxed Vehicle ARD13S is Taxed Tax due: 1 March 2025 Incorrect tax status? MOT No details held by DVLA” Quote marks are from the DVLA website. So on the March 1st 2025 I will re tax it before the April 1st tax change for free saving £190.
Another TH-camr stated you could take an alternate route online and use the number on a V5 document. Maybe because there will be many used vehicles that when sold with months of unused tax, will have to be re taxed by new owners. When you say absolutely all cars will have to pay tax, does this mean classic/vintage vehicles also?
I believe that ev owners should pay some kind of road tax, your ev is a lot heavier causing more damage to the road and your using the road the same as I am.
some cars/drivers are currently and will still be exempt from paying road tax/excise duty - for example registered disabled drivers and their main vehicle, Police vehicles, ambulances, fire engines and possibly a few others
You can actually tax a car without that security number. You can tax it just with the numberplate. I’m sure people will simply sorn their car and then tax it again before the increase.
Hi Dave, (I think) it's simple to tax the car early, all you need is to not use it for a few days. You declare the car SORN and don't use it for a few days and then when you can apply for tax it is taxed from the beginning of that month that you are in. So for those wanting to avoid paying next year, they would need to declare the car SORN in February, don't use the car (as legally you can't) and then a few days later (normally 4-5 working days) you can then request to re-use the car and re-tax the car. It will then be taxed from February to end of Jan 2026. If the government do then want to pro-rata the cost, then maybe it makes no difference, but if not then you'd get 10-11 months of tax-free motoring.
@@djtaylorutube I don't think you can re-tax if it already has tax as the gov website will automatically take you to the "you don't need to tax this car yet" page, doesn't it?
I thought pre April 2017 EVs were fully exempt but you're saying they have to pay £20.. i might have misread the government website. I was thinking about picking up an early EV for local driving and never pay road tax again.
My tax is due on 1st march. The correct rate at that time will be Zero for 12 months. I will have the argument if they try to tax ma in advance. The only way I can see to get 11 months free is to SORN your vehicle in January, then tax it again in March, giving a month without tax, and therefore use, of your vehicle. It will also give the lower rate for 11 months in future years.
The dodge some people will try is to SORN the car, the remainder of unused road tax is refunded, so you get £0 back and then you go to a post office to renew it again paying £0 but you can't drive there! Our cars are coming up for renewal next February and March so will still be free till 2026.
@@tompstomps You can re-tax anytime during the year. The website warns that you may be charged again. I re-taxed to move my date to March. I had to pay £0 again. Plenty of us have done this, we're doing fine. 😉
If you have the ability to declare your car as SORN for the month of febuary 2025 then re tax the car in March 2025 for free would you get another year of £0 tax?
Ordered my first ev 10 months ago, got it this week. Did a 500 mile trip yesterday and it cost twice as much as petrol. Getting 3.2-3.5 m/kw which is way below expectation, even at 56 with cruise on behind a truck. Love the way it drives, hate the fact it's more expensive than my Mazda 6 to run, what's the point? 85p/kw is a total joke.
@davetakesiton I charged at home to 100% and had to stop twice to charge on the road, one was 79p the other 85p, I didn't have any alternatives available.
To game the tax ready for 2025 increase, you surely could declare your car off road one day in March 2025, then use your v5c to buy new tax the following day?
Nope, no need to SORN it. Just re-tax. Read the comments here, many of us have already done exactly this. It's a non event other than the website tells you that you will be charged £0 again.
EV drivers already pay tax we pay IPT at 12%. IPT is effectively a pay per mile tax you tell your insurer how many miles a year you will do, the more miles you drive the more you pay for insurance. The more you pay for insurance the more you pay in IPT. Likely they will just add more on to IPT as revenues from fuel duty drop. Makes much more sense than setting up cameras everywhere for idiots to vandalize.
@@johniooi3954 The question was about cost per mile not how it's to be collected :) My rationale for 2p is that 10,000 miles then works out at £200 for the year which seems reasonable and in line with "standard VED". I don't have an answer as to how it's collected and to take the odometer isn't going to work either without further input because that doesn't address the 5,000 miles in Europe that I did last year which should not be included, otherwise i'm paying French and Italian tolls, Swiss tolls and Spanish tolls and then paying UK gov for those again.
No, he's incorrect. When you tax it in March, the rate will be £0 at the time you tax it. You'll be able to tax it for either 6 or 12 months. If you choose 6 months, then you'll have to pay for the remaining 6 but why would anyone do that?!
So an "expensive car" is anything £40k+? So that's a massive drop in sales for Audi, BMW etc as the vast majority of their cars are over 40k. A regular Audi A4 is over 40k so this is just madness!
So does this mean my wifes ICE car road tax of £15 p/a will be cheaper than a new EV tax? I presume this £190 is for new cars not an increase to existing cars? I sort of understand the video but it is a complex one.
If you sell an ICE car tax refunded so new owner has to pay tax .so if you sell your car to your self you could pay new tax if you do it before 31 march ?
looks like electric vans will be over £300 road tax to. you would have to sorn your car for a couple of months . then you would need to tax the car again, that would get it cheap rate
Of course you can tax a vehicle that is already taxed, how do you think a new owner taxes it upon purchase? No matter when your tax is due just retax it on the 1st March 2025 for 12 months - just like you would do if you had just bought the car, You will get 12 months for £0 - so your renewal and paying for it will be 1st March 2026
They should have consideration on EV weight as you would have thought logically a heftier vehicle like a Tesla Model X at 2560 Kg imparts one heck of a lot more wear and tear on a road than the much lighter BMW i3 at 1,195 Kg, VW E-Up! at 1229 Kg or a miniscule Renault Twinzy at 474 Kg!!!
In telegraph today, treasury considering pay per mile system. Probably fairer, what ISNT fair is taxing fuel so much IN ADDITION to road tax. Its not as though they use the road tax on the roads so quite immorak imo.
So my 2021 EV will go up to £190 and my 2015 2litre 4x4 PHEV will go up to £20, that will be a shock as I haven't paid anything since 2016 on my 2 cars.
Add in the expensive vehicle car tax and the proposed road tax changes and you'll want to buy a good second hand ICE vehicle.- take off depreciation of these ridiculous tax generators look like a total dud.
It was inevitable that road tax would be applied, I've no issue with it. the expensive car supplement is totally unreasonable for any vehicle. It was set in 2016 for introduction in 2017 & has never changed. Everything else has go up massively bringing most EV's & a lot of 'ordinary' cars into that bracket. Allowing for inflation it should be nearer £52k ( £51,884.38 to be exact) as a starting point. This will just reduce the option of an EV for even more people.
I remember when we first found North Sea gas in the 70s and we were told we would get gas free once it’s on line….we’ll that never happened!!!!
Government sold to private companies they all had back handers for.
Unlike Norways approach of course..
That was probably the time you still believed Santa Claus was real....
And Nuclear electricity would be "Too cheap to meter"
@@BrianSmith-zs5wg Wholesale electricity prices have been going into the negative in some parts of Europe recently. Even in the UK there have been some people on flexible tariffs paying nothing for electricity for short periods of time due to excess supply.
If only we’d nationalised oil and gas like the Norwegians and we had our own sovereign wealth fund. Unlikely to have £1.4trn like the Norwegians but it could have been a nice pot for us all to argue over!
Alas the free-market/Thatcherite government dogma was just gearing up.
I've already re-taxed my EV in march this year, the original registration was in September so you can do it just go on the web site. You would normally forfeit any tax already paid but as it's zero no problem
Yep that works
Exactly, this is just another video from Dave with incorrect information. Same goes for the comment about pro-rating the higher charge for the period after 1st April, that will not happen, it has never happened in the past either for those renewing just before the new rates cut in.
Both my EVs were on different dates ; I reset them (and missed out on a zero refund) so they both expire now on 1st March 2025. Just in time for the new tariffs. Yum....
I’ve just renewed my ev for 12 months for £0 so the pro rata idea that they’d charge me for the 3 months doesn’t work.
Previously you just declared your car sorn today (tax is refunded for remaining whole months) then tax it again using the v5 number.
If we did this in march we’d get a year of zero road tax
You can voluntarily tax it any time online, you're warned that it may cost. I've done it, clearly you haven't :) Tax it using the V5 reference, it's all very simple, you're not correct there at all. Road tax has never been prorated, it's always the amount that you pay on the day.
Agreed. I retaxed mine back in March, so my tax is next due 1st March 2025 (so "payable" - £0 - in February 2025). This effectively delays the first actual payment by about 11 months. 🙂
I'm not sure though whether Gov have made any changes since then to try and close that loophole.
Same, renewed mine in March last year which was early back then. Due again 01 March 2025👍
Dave, there are two different numbers you can use to tax your vehicle. One is the number given on the reminder. The other is the document reference on the V5C Logbook. Taxing your car has never been pro-rata based on the new rate and the old one. You tax based on the rate when you tax the vehicle. In the case of EVs at the moment it's zero. You can retax at any time by forfeiting the existing tax. There are 2 ways to do this. Either SORN the vehicle and immediately re-tax it, or just retax it using the V5C reference. Either one forfeits the existing tax immediately.
Interesting idea, and I can see the idea working in principle, but it would mean every single EV owner being able to get 12 months free road tax and I cannot believe that will happen. I agree that the proportional pricing has not been used in the past but this is not a price change, it is the start of a totally new taxation policy. You may be right and I might well try it, but I hold out no hope it will work. Are you going to do it? You could do it right now as that would take you past the 1st April 2025 start date? Dave
@@davetakesitonIf the pro rata charge was true, anyone taxing an EV in July 2024 (today) would surely be charged 3 months for April - June 2025 after the change comes in. They’re not. It will only apply for tax purchased after April 2025. The only potential change I can foresee is closing the loophole allowing you to tax an already taxed car to change the date of the next renewal. If EV owners do this in March 2025 they won’t pay until their renewal in March 2026 as it stands.
Not quite. If you SORN, you have to wait a few days. I did two cars last March, my EV and a petrol one because that one was going to go up quite a lot too. SORN'd for a few days first on the petrol one, EV just retaxed.
@@djtaylorutube You don't need to SORN them. You just re-tax using the number on your V5. It will tell you the cost of another 12 months of Tax, (which I suspect is still £0) and will warn you not to pay, as you are already taxed. You just ignore the warning, pay £0, and are then told you are taxed for another 12 months.
@@chrisp7839 Yes I know. I had to SORN one because it was a petrol but had to wait a few days to retax online, immediate retax online option is not available if SORN'd. The EV, no, just retaxed.
My last car was ultra low emission diesel owned it for 9 years, bought an EV 18 months ago my car tax runs out on the first of March 2025, so 11 years not paying car tax I’m not really bothered about paying £190, driving an EV is the best experience ever.
@@davidwalker9302 tax it on March 1st and save £190
Don't forget to invest in body armor for the brawls for charging points if EVs were to get more popular...
@@JasonKing-m6m Yawn.... I've never seen a fight or even a mild disagreement over a charger other than when selfish ICE drivers decide to block a charger so they can be 2 feet closer to the shops. I have however seen a fight at a petrol station over fuel. th-cam.com/video/sL8_sJK9Up0/w-d-xo.html
A good point. Must tell my petrol head friends never to buy an EV because they are correct EVs are rubbish....Don't want chargers blocked, do we@@JasonKing-m6m
@@JasonKing-m6m Who uses public charge points ? Fill up at home every night. If I want to go to the coast, I drive there and back without needing a charge.
My tax is usually payable in April. This year i paid it in March thus resetting my calendar to a March renewal. When i did this i was actually warned that i would be losing out on a month !
Anyway, when i renew next March I beleive I'll pay the current amount at that time, zero. So Ive gained a year, saving £190 AIUI.
Theyve never done the pro rate method you believe will happen, after all road tax rates have changed before , being notified in advance, and weve always paid the rate applicable at the time not a pro rated version.
Like others I re-taxed our EV in March 2024 with no issues even though it wasn't due until Dec, maybe before this new rule came in.
We EV drivers are also taxed on our electricity we buy. 5% VAT on charging at home and 20% VAT on public chargers.
Yes we are taxed higher for public charging, but when you consider how much revenue is earned on petrol and diesel tax, it is obvious that EV owners will have to be taxed more in the future as ICE vehicle numbers reduce
Which is considerably less than the fuel duty on petrol & diesel @ 52.95p a litre. Then there is VAT @ 20% as well. So as EV drivers we are far better off. So keep that one quiet.
@@peterjones6322it won't be through a tax on the electricity. Road pricing is more likely. Should remove the last ICE cars from the road as they'll pay that on top of their fuel tax.
@@peterjones6322 Whilst the tax element on public charging could be increased it probably wouldn't be enough to make up for the lost revenues on petrol/diesel sales. It would be difficult to increase tax on domestic electricity to make up the difference as that would impact on too many people regardless of whether or not they drive. Some sort of road usage payment is more likely, this would be picked up by the MOT and will probably mean that even cars under 3 years old will also have to go for an annual inspection.
Until you buy a new one and then it will be road tax plus £415 for 3 or 4 years
Dave, you are wrong again. I taxed my car online early this year without any problems or error messages which you described. It was taxed in March 2024, 8 months in advance of my due date. My first road tax payment will now be in March 2026, not December 2025 which it would have been. That adds an additional 4 months of free road tax.
Me too!
Same here. 2 x EVs. Previously May and July renewal are now Feb 2025. Saved a year on each.
Not sure your road tax information is completely correct. I registered my ev for road tax early as I'm away round that time. Didn't have the renewal form or number. All you need is the reg and the number off the v5c document. Mine goes for a year and they've not prorated it. £0 cost for 12 months.
Hi Dave, I drive a salary sacrifice BEV, which for me is extremely economical. I pay a reasonable amount every month (lower than the loan payments on my old PHEV) and I do most of my charging at home using an overnight tariff. So extremely economical. I don’t know how this will affect me. I suppose I’ll be paying the same tax as ICE cars. The expensive car thing will probably hit me, let’s face it many if not most current family size BEVS cost over £40,000. I guess my lower charging costs will compensate to certain extent. I hope this will incentivise manufacturers to build more family BEVs that cost under £40,000.
Living near to London, i used to be able to drive into Central London for free (no congestion charge @ £15.00 per day), that changes at the end of De '25. To park in City of Westminster, which is basically all of the centre used to cost at a meter £1.00 odd for four hours, as of April that went upto circa £20.00!
So those EV drivers like me who used to take advantage of all these benefits including free RFL, are all getting charged, which is much the same as when the Government told everyone to buy diesel, and now for older cars gets them on RFL, and in London - ULEZ at an additional £12.50 per day, and in most areas an even higher charge for on street parking.
The motorist is an easy target!
The problem with London is congestion. Whenever I go inside the M25, which is about once a year, I park near an underground station and use that. Far quicker to get around!
Could you possibly apply to SORN the vehicle and then become able to tax it for a year?
for me the road tax is not as relevant in cost as the insurance ....that's the real stinger
Insurance for EV's isn't any more expensive (really)!
They have gone up for Tesla's because they are in the 'luxury' car sector and have high performance!
My 15 yr old Golf was £340 for a year.
My E-Niro was £440 for a year.
The E-Niro is valued at £16k more than the Golf (no longer mine) which I'd say was proportionate!
@@computerbob06 I generalisation… my insurance on a Tesla model Y RWD is £1800 with 9NCB - middle aged man . And it’s only going to go up every year. My hybrid Lexus before this was 600 quid.
@@issiewizzie Teslas and every self drive cars are more expensive because there are some stupid drivers that put it on auto and sleep on the driver's seat. One more reason is that they are stupidly high powererd and that is a big no no for insurance companies.
@@issiewizzie I'm 50+ with no claims for 20 years. My Tesla model 3 was £280 in 2023 - but this year 2024 went up to £460. So don't know why you ended uppaying what you did. p.s. On average all insurance went up by 50% last year -including ICE. So I would have expected my insurance to go to £420...so £460 not too bad
I swopped a Vauxhall corsa ICE for a a Nissan Leaf and insurance didn’t cost anything more. I was surprised as was expecting an increase.
What is the incentive to by a EV if you have to pay standard tax £190? I would have stuck with my diesel for another 2-3 years. Im cheesed off😮 There's is no rush to by a EV if this is going to happen next year
We were always going to be taxed , where you save money is on running costs and fueling your EV .
In a few years time price parity will happen with Ice cars , then if you sit down and do the maths it will be just cheaper to run a EV , but I can foresee in a few years time more tax being put on petrol and maybe road tax on Ice cars as they try to speed up the transition.
Maybe it's the 2p per mile? Just a thought!
You call £16 per month an incentive...😂😂
honestly mate, you can save that by swapping insurance and electricity companies.
In my case because charging at home is a lot cheaper.
I feel the wealth tax on EVs will kill off any incentive folk may have of buying an EV. Although there are quite a few brands that sell for under 40k, there will be be a time when all reasonably sizes EVs will be priced over 40k. I don’t mind paying road tax,but I do resent the wealth tax🙈🙈
Your making out that having to pay another tax is really good, whether it’s £20 or more is beside the point
If you use the roads pay up !!!!
The renewing up to 2 months early is if you want to keep the same start date
Bought my car in May and last year moved the Tax back to March with no problem. NO you do not need the number on the form the website "talks" you through it. Bit late now though. So I will get 10 mths free. [Lost 2 months moving backwards] rather than hitting renewal at May it is now March 25. ie before the change.
We will see if you are right I doubt it re the spread concept as it is too complicated. Previously any cost rise in April was only charged from April so it would be a completely new concept for the Tax.
I really did it for the "expensive Car" addon as it was not clear when they brought it in if that would be applied retrospective. That was the main reason I bought a BEV rather than a PHEV at the time. At least now you can actually buy a BEV for less than the magic £40k.
Its Vehicle Excise Duty (VED), the money goes into the pot. It’s no longer a road fund licence. We pay excise duty on beer, wine and spirits, the excise duty collected isn’t used to fund the upkeep of pubs or building new ones, I wish it did :-)
My view from abroad. Sounds reasonable. In Sweden, all ultra low emission vehicles pay SEK 360 per year. (Divide by 10 to get an approximate figure. Less than £36 or €36.) Check Google for a more accurate rate. The only thing that differs is that when I had a hybrid, it counted as ultra low emission. I don't know if plug-ins still do or not, but my EV does. And if the old car was ultra low emission, the tax hasn't changed for the old car. I say as you, Dave, it's probably not gonna last forever. Have a nice day.
Hi Dave I tax my car early back in March and as you said you need a reference number to do this but you can or could just use the number on your V5 which is what I did, so now it will be due for renewal in March 2025
No real surprise as you say. The Government(s) were/are not interested in incentives to help expand the EV market anyway. I’ve had 7 years of not paying road tax so not grumbling.
Simple.
You can retax your car whenever you wish you get a warning on DVLA site that states ypu will lose money on your existing road tax, but it doesn’t matter on an EV because it is zero. So you may have 10 months of zero EV tax but you CAN tax it for 12 months again today.
I did this.
My tax now runs out at end of February 2025, so I will be taxing my EV for 12 months at £0 for 1st March 2025
That's wrong It will cost you £140.00 in april.
It’s the £40,000 ceiling that I have an issue with. Given the rate of inflation for the past few years, it’s hardly what you’d call ‘expensive’ particularly as most sales are PCP / Lease and you don’t have to be earning a fortune or be ‘rich’ to afford the monthly’s on a 40-50, even 60 grand car if you shop around. This needs to be increased to at least 50 if not 60,000 to account for the shift in the car price median, particularly when you look at EV pricing.
Tesla will react, they did in America, to get some of their range under the threshold for incentives. In UK Model 3 is already £39,995. Watch out for a sales campaign for Model Y
what about a ten year old mini that currently costs £35 a year in road tax. Will that revert to £190?
Absolutely right Dave. A tax for all owners and may iron out the confusion of pricing of roads. I was laughing when folk suggested early taxing. You come back to us if that myth really works.
It does, why do people think it doesn't? It's not new, you can retax any car but end up paying twice so why would you?
It does work. Many of us have done it. Why don't you try., It you are right, and its prorate, then the website will ask for a charge now to cover the period after April 1st. If not, you pay £0, and are told you are covered for the next 12 months.
It does work but you need your road tax to run out at the right time. Paying twice for one month to gain 11 months of discount makes sense. Most people cannot be bothered. You do not need a reminder.
So if i understood correctly, if i went out and purchased a used car, maybe 2-3 years old, and the original value exceeded the 40k mark, as long as you get ot before 31st March, you will be exempt from paying the premium car tax?
I had 2 electric cars. You pay more for them, maintenance you get charged more. Car insurance is higher when I asked why, the answer from insurance, they do. They are cheap on my home charger, but cost more than a diesel car on rapid chargers if you don’t have a home charger. The RFL is fare, however. If you have a polluting Renault 1.5 diesel 2012, you pay £20 a year. So yes, only fare to charge EVs,but everybody who uses the road should pay the same minimum RFL not pollute more and pay less.
Dave, you clearly have an issue with "Rich" people owning an EV and somehow getting away with incoming car tax charge.
It was very naive to think EV drivers would be exempt for ever from car tax, the writing was on the wall when the government got rid of the EV discount.
But you've had it good for a number of years.
Not sure if it's exactly the same, but here in Norway we got a road traffic insurance tax. Basically a daily rate as long as the car has the plates on, or technically just activated. It is paid as part of the insurance so its fairly simple.
They changed the rates after March 2024 so that EVs pay a bit more than fossils, probably to offset the fact that they don't get any fuel tax from them. Petrol and diesel with DPF pay 7.6 NOK/day and EVs 8.7 NOK/day.
So with this system we can just log on to the public roads administration website and register or unregister the car as we like. The minimum required insurance will be activated or deactivated automatically as well I believe. If you've got full coverage you'll still pay the optional part of the insurance.
Some people do this for cars they only drive in summer, like veterans and such.
I think it's likely we will move to a similar system in the UK at some point but based on mileage. There is a big stigma around the pay per mile tax that upsets the knuckle draggers when the Daily Mail tells them to be angry. They completely miss the fact that fuel duty IS a pay per mile tax as is the insurance premium tax at 12% we already pay. Likely they will just add more on that. When you buy your insurance you tell your insurer how many miles a year you will do the more miles you drive the more you pay for insurance. The more you pay for insurance the more you pay in IPT.
@@nervousfrog101 Insurance premium is the same here as well. You pay based on how many km you want to pay for per year. I've usually selected 8 or 10k per year, but then I don't drive much. When I increased it from 8 to 10 this year it cost me another 750 NOK or something. Depends on coverage as well I believe. And as its a 2020 e-Golf I got full coverage still.
Was aways going to happen, £190.00 on my £50.000 EV less then I expected.
Give it time... your expectations will be exceeded far beyond your imagination....
had it for a year worth 20 grand now if you can find a buyer
@@brianbottomley7000 Keeping mine til the wheels fall off. Depreciation isn't a concern for me.
Won't you also have to pay the 'luxury car' tax at £410 a year as well?
@@brianbottomley7000 Why would he want to sell, the cars last for many years,. And if you do sell, remember that now its cheaper to buy a used EV than a used ICE car. That's the other side of the depreciation event.
Thanks Dave for the information- much appreciated 👍
I SORNed my EV on the last day of February this year and re taxed it for 12 months on the first day of March. That way, my renewal will be March 2025. You can SORN on line but to re tax online you have to leave a few days. You can re tax straight away by going to a post office. Do the same on the last day of Feb 2025 and make the most of the last £0 rated VED rate on your EV.
UK is weird with this tax...
I have a question.
How does the UK view the 40k price tag?
The price of a new car. I understand.
How about for a used car, the average price of a used car?
It's the list price of the car, including extras, when new. Second hand price is not relevant.
The pay per mile will come in as well, newer cars are digital, GPS and so on, they know what is your mileage
I taxed my Zoe in march before it was due in June using the Ref number on my V5.
If like me you have owned the EV from new then every year in the same month then Tax , Insurance, and extended warranty will be due making that an expensive month .
Changing the Tax to a different month would help anyway.
I have been questionning this since the Autumn 2022 budget and also wrote to my Local MP. After many months, March 2023, I finally had a reply. part of this quoted the following
"Cars with a list price when new exceeding £40,000 pay an additional supplement for five years as well as paying th stanndard rate of VED, which means those whoc can afford the most expensive cars pay more than the standard rate paid by other drivers. As around 80 per cent of all new cars have a list price in excess of £40,000 the Government considers this threshold to be suitable way of distinguishing the more luxury end of the market."
I was amazed that the luxury part applied to 80% of cars at £40,000.
I am happy to pay a basic VED but feel that backdating this was wrong as it leaves diesel drivers paying as little as £20 where most EV owners will be paying £190. I feel re the backdating, they should have done this with all vehicles and redone the whole system as from a certain date. We also know that many vehicles emissions were far higher than quoted, so this should also be updated, maybe based on the MOT emissions test?
Interestingly some articles indicate the luxury tax will also be applied to the older EV's where it is still with 6 years of age. I was happy that Tesla had the Model 3 RWD at £39,990 so can avoid that one!
I do think EV's should have had a higher figure for the luxury car tax, as we are helping to move with their eco plans, but there we go.
Dont forget that the £40,000 threshold is not the price you pay for the car but the list price including all extras such as different paint, sunroof, etc.
@@Kevin-dp1vy That is why I added nothing different such as the paint! Dave also covered this well in his video.
Some high efficiency diesels like the 15 year old Fiesta Econetic that I'm about to sell have £0 tax, and will keep that. Just in the process of replacing it with a 4-year-old 90k mile E-Niro (hopefully a bargain at £12500).
@@Tim_Small I had a Kia E Niro 4+ for the last 3 years on a lease and moved from an Audi Q5 S Line. The Kia was fantastic and I didn't look back! Charging at a fast charger actually worked well fwith a stop for food and drink, around 40-45 minutes to be back to 80% on a long road trip. That seems a good deal so enjoy it and get a cheap overnight tariff to charge at home.
I actually think the so called Luxury rate should be £50K now as many 'family' cars these days list price, no matter what the propulsion is, is over £40K!
I have just leased my first ev where the lease company tax the car Will i be liable for this change in road tax?
It will entirely depend on the wording of your lease contract.
taxed my EV on the 31 AUG 2024 and will run out on the 1st Aug 2025 so thats good news for me free 1 year road tax .
That was interesting and informative thanks, but I will be surprised if you are right about dodging the (5 year) expensive car tax (ECT) by buying before the break date. But! You might be right taxes move in mysterious ways on occassions. One thing about ECT not covered which EV drivers might want to be aware of, is that final list price in relation to the ECT. If you go for a model that has an advertised list price of say £39,800 you can't be sure it wont get slapped with ECT. Simply because the advertised list price may not be the final price if you order it with say, metalic paint costing £201, or maybe one you are looking at in showroom has metalic (or some other extra), because metalic paint at say £201 would up the cost new to £40,001 you will pay the ECT. Anything fitted to a car before delivery which takes the advertised list price over 40k means it is then in the ECT territory.
When I bought my Golf sized EV in 2022, I ensured I kept the price under the £40k "luxury" car tax limit just in case 😁.
I did compare the EV against an equivalent VW Golf, it was ~£5k less expensive, but I went with the EV anyway 😂.
But, the £40k limit has been subject to "fiscal drag" due to inflation. In reality, it should probably now be £50k. That's not going to change anytime soon 😂.
Most "family" EVs are over the £40k limit, so that might really impact EV sales going forward !!!
How does that effect me, well assuming battery degradation isn't too bad I'll just keep my existing car, so NO new EV car purchase for the foreseeable future and NO well looked after EV on the used market - the government can't force me to buy a new EV - screw them 😂.
Its there own fault for buying a stupid milk float
Hi Dave. Thanks for the informative posts. On the subject of car tax, there is, in reality, a 'pay per mile tax'. The tax paid on a litre of ice fuel is 80-90p so the more miles you do, the more fuel you use so the more tax you pay. This is another area the Government needs to address as the loss of revenue from ev's is going to be truly staggering. Any thoughts?
Just did a few calculations and the annual LOSS in revenue, only counting ev's currently registered and even after them ALL paying £190 car tax is over £626,MILLION! Stand by for further tax raising ideas from the government aimed at EV users.
I have no problem at all with paying the same amount of tax as everyone else but am I correct in thinking that hybrid cars will still receive a discount?
If so then is doesn't seem fair at all as they still produce emissions where full EVs do not.
Just answering a question - The way that was suggested regarding taxing an EV early was to SORN it for a day and then re-tax it. Thus avoiding having to tax an already taxed car.
No need to even sorn it first. Just retax and pay the £0 due.
The government yet again benefitting from fiscal drag. The luxury car tax figure set in 2017 needs to be linked to inflation, it's pretty outrageous they get away with setting a static figure. If it was properly valued this would be 52k by now.
40k no longer buys what could be considered a brand new luxury vehicle.
It had to happen at some point. All the roads need to be fixed (tax in any form is where the money comes from ultimately)
Could you just park it up on private land and declare the vehicle SORN for a few weeks then reapply for road tax a week before the change?
Yes, others have suggested that too, I can’t believe it will work but let me know if you try it
No need at all, just retax and pay the exhorbitant £0 and no refund of any part of the previous £0.
Plenty of us have already done this, unfortunately Dave hasn't and is a non believer. 😊
Have just sorn for the minimum 7 days then retaxed for a year, it won't let you tax for 6 months .....I will try it again in march .
I just renewed my tax for year 2 on my Tesla Aug 24 to July 25 and it was a £0 tax so I don’t believe the cost is prorata, however I suspect the way it works is the last year I will pay 12 months even if it’s only ‘covering’ 2 months of year 6 and 10 months of year 7
In Denmark all aspects of cars are heavily taxed! The purchase price is taxed by 50%-150% and on top of that additional 25% VAT
Then there is a yearly tax for owning a car, it is depending on CO2 emissions an is 90£ (mostly EVs) to 565£ for a normal gasoline car to much heigher for a very inefficient car.
Then the Petrol/Diesel tax is about 100% (depending on type and bio content) plus 25% VAT and it will increase each year far into the future
And they are planning to add some roadpricing depending on km and area
In the UK the tax will be higher on EVs than for fossil fuelled cars.
Actually there are exceptions. Citroen Ami will still not pay VED after April 2025. ie L6e quadricycle falls outside electric car definition and will remain exempt -: Latest info from HM Treasury. Also road tax was abolished in 1937 in the UK. There has been no such thing as road tax since then.
I’m happy about that because I’m considering ordering an Ami as I only drive around 2 miles each week. The only other slight issue is the insurance seems quite high.
For cars first registered after 31 March 2025, if they are over £40k there will be an 'expensive car' supplement to pay. So, based on current rates that would be a total of £600 (£190+£410) for five years. After the car is 5 years old, the expensive car supplement is finished so not such a big deal.
Almost 70% of EV are over 40 grand
You will have to pay luxury car tax on a Vauxhall Astra EV, since when was a Vauxhall Astra a luxury car ?
Excellent point. Dave you omitted to point this out to the majority of EV owners. I thought the government was supposed to be encouraging EV ownership!
do they want us to get EV's or not? I don't get it
Yes definitely but they don't want us driving round for free, with no road tax and no fuel duty.
Historic vehicles, over 40 years old will remain tax free after April 2024. So a 1983 Porsche 911, 1983 Dodge Ram or in my case a January 1984 corvette are all tax free.
Also you can tax a vehicle online without the reminder, you just need the reference number off the V5 registration document.
Dave,
You might have covered the subject of battery health. If not maybe you would like to geek out on this. How good are the Apps? How good is the read out from the Can bus? Is it true to say that early cars had say 45kwh batteries with 39Kwh useable and that the useable bit is offset by the battery size ie after two years you have 100% 39kwh useable but a battery size of say 43kwh. Do different manufcturers treat battery health in different ways? Can you access the near full battery size via software ? Some of the better used EV car companies give battery health info as part of the sale ie Go green Autos of Radstock. How reliable are these tests? I think there might be a 12 minute geek out on the subject of how to check battery health. How to charge and when to charge. I try to keep at about 70% ie use 20% a day and top up at the cheap overnight rate. My EV is 41/2 years old 36k miles and I think 100% battery. Say two near identical cars, similar mile, one 100% and the other 88% what would the price difference be? Just some thoughts for Utube video.
I think you might be right about the £0 tax. Seee LLM Perplexity vis LLM Chat GPt 4 Omni.
There's never a rush to by an ev 😅
I re taxed my EV from March 2025 to February 2026 for free to avoid the April 2025 fee of £190
Same here, it was a no brainer tbh.
This is how it works.. I bought the car on October 3rd 2023 so was originally taxed until 30/09/24 however I re taxed it to the end of February 2025 . “✓ Taxed Vehicle ARD13S is Taxed
Tax due: 1 March 2025
Incorrect tax status?
MOT
No details held by DVLA”
Quote marks are from the DVLA website.
So on the March 1st 2025 I will re tax it before the April 1st tax change for free saving £190.
Well you delayed the inevitable. Good for you....
I'll retax both my EVs in March.
……as I did….
Dave,you cheeky monkey...spat out my cornflakes when you uttered the immortal phrase..."ceased to be".... fantastic 😂😂😂
Another TH-camr stated you could take an alternate route online and use the number on a V5 document. Maybe because there will be many used vehicles that when sold with months of unused tax, will have to be re taxed by new owners. When you say absolutely all cars will have to pay tax, does this mean classic/vintage vehicles also?
I believe that ev owners should pay some kind of road tax, your ev is a lot heavier causing more damage to the road and your using the road the same as I am.
some cars/drivers are currently and will still be exempt from paying road tax/excise duty - for example registered disabled drivers and their main vehicle, Police vehicles, ambulances, fire engines and possibly a few others
Like you, I have a pre 17 car; so £20 = WHOO HOOO!!!!
I do wish my little Kia Soul had more range, but you cant have everything.
You can actually tax a car without that security number. You can tax it just with the numberplate. I’m sure people will simply sorn their car and then tax it again before the increase.
Hi Dave, (I think) it's simple to tax the car early, all you need is to not use it for a few days. You declare the car SORN and don't use it for a few days and then when you can apply for tax it is taxed from the beginning of that month that you are in. So for those wanting to avoid paying next year, they would need to declare the car SORN in February, don't use the car (as legally you can't) and then a few days later (normally 4-5 working days) you can then request to re-use the car and re-tax the car. It will then be taxed from February to end of Jan 2026. If the government do then want to pro-rata the cost, then maybe it makes no difference, but if not then you'd get 10-11 months of tax-free motoring.
No need to SORN it, just retax it and pay £0. No refund of the previous £0 though and it warns of "paying twice".
@@djtaylorutube I don't think you can re-tax if it already has tax as the gov website will automatically take you to the "you don't need to tax this car yet" page, doesn't it?
@@farhada147 already done it, therefore I know how it works. 😉 It just warms you that you'll pay again...£0.
I thought pre April 2017 EVs were fully exempt but you're saying they have to pay £20.. i might have misread the government website.
I was thinking about picking up an early EV for local driving and never pay road tax again.
My tax is due on 1st march. The correct rate at that time will be Zero for 12 months. I will have the argument if they try to tax ma in advance.
The only way I can see to get 11 months free is to SORN your vehicle in January, then tax it again in March, giving a month without tax, and therefore use, of your vehicle. It will also give the lower rate for 11 months in future years.
There is one exemption if you get the highest rate on you disability benefit you are exempt from road tax and on some roads toll and bridges as well
And dont forget we also get taxed on the electricity we use!
I guess free road tax helps the pain of the horrendous depreciation.
If you lease rather than buy - as most do - then depreciation isn't an issue.
Luckily I bought my car not expecting that it would go up in value.
The dodge some people will try is to SORN the car, the remainder of unused road tax is refunded, so you get £0 back and then you go to a post office to renew it again paying £0 but you can't drive there! Our cars are coming up for renewal next February and March so will still be free till 2026.
So just renew online, there's no need to SORN it first.
@@djtaylorutubeyou can’t renew it for free if the anniversary date is after the change in the law!!
@@tompstomps You can re-tax anytime during the year. The website warns that you may be charged again. I re-taxed to move my date to March. I had to pay £0 again.
Plenty of us have done this, we're doing fine. 😉
@@djtaylorutube awesome cheers mate
@@tompstomps and if you're doing this, you won't have the reminder so you use the 11 digit number on the V5c
If you have the ability to declare your car as SORN for the month of febuary 2025 then re tax the car in March 2025 for free would you get another year of £0 tax?
Ordered my first ev 10 months ago, got it this week. Did a 500 mile trip yesterday and it cost twice as much as petrol. Getting 3.2-3.5 m/kw which is way below expectation, even at 56 with cruise on behind a truck.
Love the way it drives, hate the fact it's more expensive than my Mazda 6 to run, what's the point? 85p/kw is a total joke.
Anyone paying 85p is just part of a joke. Why would you do that when you could pay less than half of that?
@davetakesiton I charged at home to 100% and had to stop twice to charge on the road, one was 79p the other 85p, I didn't have any alternatives available.
Buying a car EV or otherwise new at 40k is hardly a wealth move these days. That level should upped to say £80k
To game the tax ready for 2025 increase, you surely could declare your car off road one day in March 2025, then use your v5c to buy new tax the following day?
Nope, no need to SORN it. Just re-tax. Read the comments here, many of us have already done exactly this. It's a non event other than the website tells you that you will be charged £0 again.
EV drivers already pay tax we pay IPT at 12%.
IPT is effectively a pay per mile tax you tell your insurer how many miles a year you will do, the more miles you drive the more you pay for insurance.
The more you pay for insurance the more you pay in IPT. Likely they will just add more on to IPT as revenues from fuel duty drop.
Makes much more sense than setting up cameras everywhere for idiots to vandalize.
I will retax my vehicles in March. One is due April, one in June. If there's an issue I'll SORN for a day then tax them.
What about a least car. As i dont yet have the registration documents
For people a like pay by mile. What do you think a fair cost per mile would be?
2p
@@djtaylorutube So how are you going to work this given no check on car mileage for 3 years?
@@johniooi3954 The question was about cost per mile not how it's to be collected :)
My rationale for 2p is that 10,000 miles then works out at £200 for the year which seems reasonable and in line with "standard VED".
I don't have an answer as to how it's collected and to take the odometer isn't going to work either without further input because that doesn't address the 5,000 miles in Europe that I did last year which should not be included, otherwise i'm paying French and Italian tolls, Swiss tolls and Spanish tolls and then paying UK gov for those again.
The state of the roads nothing tbh
My Model 3 VED is due for renewal on 1st March 2025, so what you are saying is that I'll have to pay for 11 months?
No, he's incorrect. When you tax it in March, the rate will be £0 at the time you tax it. You'll be able to tax it for either 6 or 12 months. If you choose 6 months, then you'll have to pay for the remaining 6 but why would anyone do that?!
So an "expensive car" is anything £40k+? So that's a massive drop in sales for Audi, BMW etc as the vast majority of their cars are over 40k. A regular Audi A4 is over 40k so this is just madness!
What about those ice cars paying £20 will those raise?
So does this mean my wifes ICE car road tax of £15 p/a will be cheaper than a new EV tax? I presume this £190 is for new cars not an increase to existing cars? I sort of understand the video but it is a complex one.
This shows we're past the tipping point of EV uptake.
Did you realy think evs would not pay tax for all the road network, it had to come unless you live on a cloud
If you sell an ICE car tax refunded so new owner has to pay tax .so if you sell your car to your self you could pay new tax if you do it before 31 march ?
So when I renew my road tax in November I will have to pay approx £100 if it goes up from £190 to £200. Great.
looks like electric vans will be over £300 road tax to. you would have to sorn your car for a couple of months . then you would need to tax the car again, that would get it cheap rate
Of course you can tax a vehicle that is already taxed, how do you think a new owner taxes it upon purchase? No matter when your tax is due just retax it on the 1st March 2025 for 12 months - just like you would do if you had just bought the car, You will get 12 months for £0 - so your renewal and paying for it will be 1st March 2026
They should have consideration on EV weight as you would have thought logically a heftier vehicle like a Tesla Model X at 2560 Kg imparts one heck of a lot more wear and tear on a road than the much lighter BMW i3 at 1,195 Kg, VW E-Up! at 1229 Kg or a miniscule Renault Twinzy at 474 Kg!!!
Cheers Dave
ICE car drivers already pay per mile through fuel tax. I don't know how it could work on electricity
I think you forget one point this country charges you twice for everything so they’re probably end up paying road tax and pay per mile
Great video
In telegraph today, treasury considering pay per mile system. Probably fairer, what ISNT fair is taxing fuel so much IN ADDITION to road tax. Its not as though they use the road tax on the roads so quite immorak imo.
So my 2021 EV will go up to £190 and my 2015 2litre 4x4 PHEV will go up to £20, that will be a shock as I haven't paid anything since 2016 on my 2 cars.
Add in the expensive vehicle car tax and the proposed road tax changes and you'll want to buy a good second hand ICE vehicle.- take off depreciation of these ridiculous tax generators look like a total dud.
It was inevitable that road tax would be applied, I've no issue with it. the expensive car supplement is totally unreasonable for any vehicle. It was set in 2016 for introduction in 2017 & has never changed. Everything else has go up massively bringing most EV's & a lot of 'ordinary' cars into that bracket. Allowing for inflation it should be nearer £52k ( £51,884.38 to be exact) as a starting point. This will just reduce the option of an EV for even more people.