UK EV drivers save £47 million by renewing road tax early

New data reveals that electric vehicle (EV) owners across the UK saved an estimated £47.7 million by renewing their Vehicle Excise Duty (VED) before new government regulations came into force on April 1st.

This proactive move by EV drivers resulted in a staggering 1,467% surge in VED renewals in March 2025 compared to the same month last year.

The new VED regulations, which began on April 1, 2025, marked the first time electric cars became subject to road tax. By renewing their VED before this deadline, EV owners secured an additional year of tax-free driving.

According to research from cinch, the UK’s largest online used car retailer, 244,598 electric cars had their road tax renewed in March 2025, a significant jump from 15,614 renewals in March 2024.

Sam Sheehan, motoring editor at cinch, comments:

“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?”

The data also highlighted specific UK postcodes where EV road tax renewals saw the most dramatic increases:

Top 10 Postcodes with Biggest Increase for EV VED Renewals (March 2025 vs. March 2024):

The BA (Bath) postcode also led in potential savings, with residents collectively saving £4,137,900. Birmingham (B) and London (W) followed, with savings of £2,289,690 and £2,236,260 respectively.

Under the new VED regulations, all EVs now pay road tax in line with petrol and diesel cars. EVs registered between April 1, 2017, and March 31, 2025, pay the £195 standard rate.

Newer EVs registered after April 1, 2025, incur a £10 first-year road tax, rising to the £195 standard rate from the second year. Additionally, new EVs rgistered after April 1, 2025, with a list price over £40,000, face a ‘luxury car supplement’ of £425 from their second to sixth years on the road. Electric vans now also pay £355 annually.

Cinch