Get FREE tax for an extra year on your EV - is this correct?

theshaone

Hi - there was this information on the MSE newsletter a few weeks back:

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EV owners are exempt from paying car tax until April 2025 – but you can delay paying it for another year

Up until now, another benefit of EVs is that they've been totally exempt from road tax, or vehicle excise duty – but this will end in April 2025 (though we've a trick to get another year for free). While EVs are currently still zero-rated for vehicle tax, it's important to note that you MUST still tax your vehicle, even though you won't actually pay anything.

Get FREE tax for an extra year on your EV

If your EV was first registered on or after 1 April 2017, make sure you re-tax it in March 2025 (it can be anytime BEFORE 1 April 2025, but to maximise the savings you should do it in March). Doing this means you'll push back the deadline for paying tax on your EV to when it's next due for renewal in March 2026 (assuming you renew in March 2025).

It doesn't matter what month your EV expires, you can re-tax it anytime using your car's registration number and the reference number on your V5C Registration certificate (logbook) printed in your name. The Government website will ask "Are you sure?" to which you just click to accept.

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I have a 4 year hire contract direct with Tesla who contacted me recently saying that I would have to pay the £195 tax this April. I pointed them towards Martin's article and asked if my car tax could be renewed in March instead. They have responded with:

"Unfortunately the DVLA do not allow a vehicle to be re-taxed more than 30 days before the tax is due for renewal - 1st September in your case”.

Does that mean Martin's claims above are incorrect or am I misunderstanding something?

Thanks for any advice!

Peter999_2

Tesla are lying to you.   You can renew the tax whenever you want and it is rubbish that you can only re-tax it 30 days before it's due.

Keep_pedalling

Peter999_2 said:

Tesla are lying to you.   You can renew the tax whenever you want and it is rubbish that you can only re-tax it 30 days before it's due.

Only snag is that this is a PCH leasing agreement and the leasing company as the registered keepers sort out the VED not the OP. Normally VED costs are met by the leasing company but I assume there is a clause in the contract where they can charge the costumer if the tax is retrospectively changed. 

All the OP can do is go back to Tesla and complain, but he can’t force then to tax it early.

facade

Peter999_2 said:

Tesla are lying to you.   You can renew the tax whenever you want and it is rubbish that you can only re-tax it 30 days before it's due.

As above, the OP can't renew the tax because Tesla hold the V5, and you need the number from the front of the V5 to tax it.

Btw, I think that if your tax is due 1st April and you try and tax after 3rd of March you will end up paying as it will become a standard renewal, not a new application.

born_again

Tesla & other lease co's could go through all their cars & retax them this month, or before the 3rd March.
But is it worth it to them?
Also could leave them with a massive bill from DVLA next April for all the cars, as opposed to being balanced around the year.
Never mind the extra work for staff.

theshaone

Tesla have now agreed about the loophole and sent me a copy of the V5C so I can tax it myself. No extra work for them so everybody happy! Thanks for your comments

Kim_13

I am glad that Tesla have seen sense in this case - I imagine the majority won’t realise, so it makes sense to provide the logbook number to those who ask rather than risk them deciding never to take another lease deal after theirs expires. I agree they otherwise don’t want all tax renewals at the same time and don’t actually care given that they must have a clause to allow them to pass the cost to the customer. Any lease co that knows they do not would be more keen to try it rather than taking the loss. Perhaps at this point customers aren’t going through leases to see if there is one, but I bet they will do when the time comes that they are actually asked to pay the £195.

£195 is particularly egregious for those EVs registered before it was known that they would have to pay - there will be people in 4 year leases like the OP who were sold them in part on the basis of zero VED and who are having to pay it before they can hand the car back. They could have done the same as they did when they added Bands L and M (the £700+ bands) to the emissions based system - cars registered before a certain date don’t pay them.

I’m not a great fan of lease co’s holding V5Cs either - they’re not proof of ownership, so there is no reason for them not to be in the customer’s name other than the revenue they get from admin fees being more than the admin involved where there are NIPs or PCNs (the latter often paid at the customer’s expense, denying them their right to challenge.) My neighbour spent a couple of days driving around in an untaxed EV, because the lease company overlooked it and failed to renew the tax on time.

milleniumaire

Started the hire of my EV with Drivalia UK in December 2024 and they won't allow me to renew the tax in advance, so while a great idea, some hire company's won't allow this as they are not flexible.  Instead, on renewal of the tax in December 2025, I will be liable for the new £195 payment and they will add it to my direct debit used to pay for the hire.
Disappointing Drivalia!  I'm pretty sure if THEY were saving the money they wouldn't hesitate, but they are happy to pass it onto me as it doesn't affect them.

mbugsy18

My car tax expires in November and when i go through the application on th DVLA website it asks if i want to continue as i may be charged again. I cancelled the application to ask for advice and if anyone else got the same message or can i ignore it?

born_again

mbugsy18 said:

My car tax expires in November and when i go through the application on th DVLA website it asks if i want to continue as i may be charged again. I cancelled the application to ask for advice and if anyone else got the same message or can i ignore it?

Yes you can ignore.

£0 charge is just that Nothing...

Kim_13

born_again said:

mbugsy18 said:

My car tax expires in November and when i go through the application on th DVLA website it asks if i want to continue as i may be charged again. I cancelled the application to ask for advice and if anyone else got the same message or can i ignore it?

Yes you can ignore.

£0 charge is just that Nothing...

And if you don't enter bank or card details, they can't possibly charge you.