If you’re wondering if there is a road tax on electric cars, you’ve come to the right place. The answer to the question—do electric cars pay road tax, isn’t a simple one. There are varying classes of vehicles that will then determine the road tax charged. This is exactly what we’re going to explore in this blog post.
Here at EV Solutions, we are electric vehicle charging experts and want to share insights on EV road tax so that you can be prepared for any costs that you may incur when purchasing an electric vehicle. Let’s take a look.
Overview of criteria for road tax on electric vehicles
What we all know to be called road tax, also known as Vehicle Excise Duty (VED), is determined based on the CO2 emissions of your vehicle. But other factors such as the listing price and the year it was registered also come into consideration.
To break down the cost of electric car road tax, it can be thought of in three ways;
- Any vehicle that is a pure battery electric vehicle (BEVs) is exempt from paying road tax.
- Vehicles that are classified as plug-in hybrid electric vehicles (PHEVs) will pay a reduced amount of tax to be on the road.
- Finally, all vehicles (excluding BEVs) that were listed as £40,000 or more when first registered will see an additional premium rate of on road tax for 5 years (which begins the second time it is taxed).
Now let’s take a look at the breakdown of road tax on EV a little more closely.
How is road tax/vehicle excise duty calculated?
Road tax, also known as vehicle excise duty (VED), is a tax that is levied on drivers in the UK. The amount of road tax that you pay is based on a number of factors, including the type of vehicle you drive, its emissions, and its fuel type. For vehicles that were registered prior to March 2001, the road tax is calculated purely on engine size.
Road tax is typically paid annually, and the amount you pay can range from a few pounds to several hundred pounds. If you don’t pay your road tax, you may be subject to a fine or even have your vehicle seized. To avoid this, it’s important to be aware of how road tax is calculated and what you need to do to ensure that you’re up to date with your payments.
Now let’s take a look at if there is road tax on electric cars.
How much would road tax/VED cost for an electric car?
If you’re thinking of making the switch to an electric car, one of the first questions you might have is how much road tax (also known as Vehicle Excise Duty, or VED) you’ll need to pay. The good news is that electric cars (BEVs), due to being zero-emission vehicles, are exempt from road tax in the UK. After that, plug-in hybrids (PHEVs) will pay a small amount of road tax and both PHEVs and cars (excluding BEVs) that cost over £40,000 when listed will pay the annual supplement for five years, which begins after the second time it’s taxed.
Battery Electric Vehicles (BEVs)
The amount of road tax/VED you’ll pay for a Battery Electric Vehicle (BEV) will be zero for the first year and any year after that. This essentially means that you don’t pay any road tax on a purely electric vehicle due to the fact that it produces zero emissions. This can be quite alluring when you wonder if EV cars pay road tax as your running costs are to be lower.
Plug-in Hybrid Electric Vehicles (PHEVs)
Road tax, or Vehicle Excise Duty (VED), is based on a vehicle’s carbon dioxide emissions. The first year road tax for a PHEV is likely to be between £0 and £105 for the very first year. The actual cost will depend on the CO2 tailpipe emission levels.
If you’re not sure, you can also look up the emissions for your specific model online. Once you know your PHEVs emissions, you can calculate how much road tax you’ll need to pay. After the first year, the cost will be £145 per year.
Premium Rate on vehicles worth £40,000 and over
The amount of road tax/VED you’ll pay on a vehicle worth £40,000 is subject to a premium rate. This means it needs to be paid in addition to the road tax charges that apply for the first five years. This only comes into play on the second occasion that VED is applied to the car. However, you do not need to pay this if you have a purely electric vehicle (BEVs) as they produce zero emissions.
If you’re planning to purchase a car that falls into the Premium Rate category, it’s important to factor in the cost of road tax/VED when budgeting for your new vehicle.
A guide to road tax on Electric Vehicles by EV Solutions
After reading this comprehensive guide to EV road tax, you should have a much clearer idea of what vehicles are subject to road tax in the UK and what their likely costs will be. If you’re pondering answers to the question of whether electric cars pay road tax, you should now be further educated on what you would be expected to pay as a purely electric car (BEV) owner.
Alongside that, you’ll also know that, as well as paying zero road tax for your BEV, if you do choose to go with a plug-in hybrid (PHEV), that will you will be subject to a small amount of road tax in the first year (between £0-£105) and then £145 a year after that. As well as the fact that, if you have a vehicle that costs over £40,000 when registered (that isn’t a BEV, as they are exempt), you will pay a premium on top.
Here at EV Solutions, we are experts in vehicle charging ports and knowledgeable on the up to date on the electric car road tax rates. If you are looking to purchase your own EV, take a look at the full range of EV chargers that we offer and don’t hesitate to call us for a free quote.