Electric vehicle drivers have been urged to take advantage of a loophole which could see them save £195 before Rachel Reeves's car tax changes come into effect.
The urgency comes as the looming April 1 date grows closer which will see electric cars pay Vehicle Excise Duty for the first time.
Experts have said by renewing road tax before March 31, ahead of new charges coming in, drivers could save money.
With an estimated 1.4 million electric cars currently on UK roads, this represents a potential collective saving of £273million.
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Car tax hikes will see electric vehicles charged VED for the first timeGETTY/X/DVLASam Sheehan, motoring editor at Cinch said: "Electric car drivers have long enjoyed free road tax, but that's set to change from April 1, 2025, when electric cars registered between April 1, 2017, and March 31, 2025, will pay the same standard £195 road tax rate as petrol, diesel and hybrid cars."
However, drivers can secure another year of free road tax if they take action before the deadline, according to Sheehan.
Drivers need their vehicle's number plate and the 12-digit reference number from their V5C logbook to complete the renewal.
"All they need to do is renew their road tax on the Government's website before March 31 2025 by putting in their car's number plate and the 12-digit reference number on their V5C (logbook)," Sheehan explained.
"The form will ask if they're sure because, normally, renewing early changes the renewal date and means paying twice for road tax until the original renewal date. But since EV road tax is currently free, this doesn't matter."
This early renewal strategy allows EV owners to lock in another year of free road tax before the new charges begin, he noted.
From April 1, electric vehicles will be subject to the standard £195 road tax rate, matching the charges for petrol, diesel and hybrid vehicles. For newly registered EVs after the April 1 date, the situation is slightly different.
"Those that buy new EVs won't be so lucky, since electric cars registered after April 1 2025 will be subject to the standard road tax rate, and the expensive car supplement if they cost £40,000, from their second year on the road," Sheehan warned.
However, for new EV buyers in their first year, they will only pay the lowest rate of £10.As drivers prepare for the new VED charges, experts are warning about a rise in payment scams targeting motorists.
Ahead of the date, Rhydian Jones, Confused.com car insurance expert, urged drivers to be vigilant when receiving tax renewal notifications.
He said: "Some drivers are being tricked by VED payment requests which are in fact scams and are being warned to avoid these. If you do end up clicking a link from a scam email or text, you could end up losing a lot of money.
"Always be vigilant, your car tax needs to be renewed once per year and drivers can use our tax checker tool to see if their car is taxed and how long it has left."
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Electric cars will be charged the lowest rate of VED from April 2025PAHe added: "If you do end up clicking a link from a scam email or text, you could end up losing a lot of money. Always be vigilant, your car tax needs to be renewed once per year and drivers can use our tax checker tool to see if their car is taxed and how long it has left.
"That way, you are less likely to fall for any unexpected notifications that could be trying to catch you out."
