Martin Lewis urges drivers to use £0 road tax | European Markets

Cash knowledgeable Martin Lewis is urging EV drivers to get free highway tax for a 12 months with a loophole in March.

Talking on the latest episode of The Martin Lewis Cash Present Dwell on ITV1 and ITVX, the Cash Saving Professional founder informed his viewers about a loophole within the car tax system which might save drivers of electric automobiles large money.

Martin stated that even when your car tax isn’t due quickly, you need to re-tax your EV on March 31 to get one other complete 12 months of Automobile Excise Obligation, because it’s correctly identified, for £0.

It is because from April 1, some EV drivers will likely be charged car tax for the primary time ever.

New guidelines will imply that EV drivers will likely be made to pay up to £195 from April 1, after the federal government eliminated the £0 band for Automobile Excise Obligation, forcing electric car drivers and different low emission drivers to pay tax for the primary time ever.

However you possibly can re-tax your car at any time, and in case you tax your car earlier than April 1, it can nonetheless value you nothing, however it can lengthen the quantity of time earlier than you’ll need to pay for it.

Martin Lewis stated: “Do you have an electric vehicle? If so there’s a trick to get a year tax-free.

“From the 1st of April, EV owners will start paying Vehicle Excise Duty – road tax as it used to be commonly known, it isn’t it’s Vehicle Excise Duty – which will be £100+.

“But if you re-tax now on gov.uk it’s free. So you get a year from the date that you re-tax.

“So, you might want to leave it til the last day of March and then it would be perfect but if you just wanna do it, do it now and you get a year longer.

“Now the crucial thing of this is, you can re-tax at any time, even if you only did it two months ago. You can do it again now. You have to pay each time, but it’s currently free so there’s nothing to pay.

“So effectively this is a loophole that says, just go and do your retaxing as near to that deadline as possible and you get an extra year for free.”

From April 1, EVs first registered (i.e. first offered) between April 2017 and March 31 2025 will likely be made to pay £195.

EV and low emission vehicles registered between March 1 2001 and March 31 2017 will likely be made to pay £20 a 12 months.

There will even be a ‘supplement’ tax for zero emission and EV vehicles from April 1, 2025.

The federal government says: “New electric and zero emission vehicles registered on or after 1 April 2025 with the list price exceeding £40,000 will attract the standard rate, plus the expensive car supplement for the first five years from the start of the second licence.”