1,467% surge in Vehicle Excise Duty (VED) renewals to secure final year of tax-free driving for electric cars.
According to new research from cinch, the UK’s biggest online used car retailer, electric vehicle (EV) owners in the UK saved a potential £47,696,610 by renewing their Vehicle Excise Duty (VED) before the government’s new road tax regulations came into effect on 1 April 2025.
The new VED regulations introduced on 1 April 2025 meant electric cars had to pay road tax for the first time.
A Freedom of Information (FOI) request was submitted to the Driver & Vehicle Licencing Agency (DVLA) to uncover the number of EV drivers that renewed their road tax in March this year compared to March 2024.
The data reveals that road tax was renewed for 244,598 electric cars across the UK in March this year, which is a 1,467% increase compared to the 15,614 renewals in March 2024.
Sam Sheehan, motoring editor at cinch, commented, “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 UK postcodes leading the way in early EV road tax renewals
The data also shows the areas with the highest increase in electric car road tax renewals in March this year compared to last.
The BA postcode (Bath) was the clear front-runner, with a 14,534% increase in EV road tax renewals in March 2025 compared to the same period just a year earlier.
The FK (Falkirk) postcode, with a 7,219% increase, and DL (Darlington) with 5,617% increase round out the top three and set the tone for a top 10 that shatters the national average.
Top 10 postcodes with the biggest increase for EV VED renewals from March 2025 to March 2024:
- BA (Bath) – 14,534% increase
- FK (Falkirk) – 7,219% increase
- DL (Darlington) – 5,617% increase
- W (London, Western and Paddington) – 5,284% increase
- B (Birmingham) – 3,236% increase
- NW (London NW) – 3,100% increase
- GU (Guildford) – 2,745% increase
- BN (Bolton) – 2,612% increase
- LS (Leeds) – 2,442% increase
- DE (Derby) – 2,317% increase
Millions saved by EV drivers renewing early
The BA (Bath) postcode also took top spot for the highest potential savings with £4,137,900. B (Birmingham) and W (London, Western and Paddington) postcodes were in second and third with £2,289,690 and £2,236,260 respectively.
Sheehan commented on the data findings: “It goes to show how savvy EV drivers were ahead of the road tax changes – and how useful consumer advice led to savings for so many people.
Top 10 postcodes with the highest potential savings by renewing EV VED in March 2025
- BA (Bath) – £4,137,900
- B (Birmingham) – £2,289,690
- W (London W) – £2,236,260
- GU (Guildford) – £1,453,530
- G (Glasgow) – £1,269,840
- LS (Leeds) – £1,249,170
- FK (Falkirk) – £1,141,725
- MK (Milton Keynes) – £1,140,165
- LE (Leicester) – £800,670
- DE (Derby) – £749,385
Understanding the changes to road tax for EVs
The new VED regulations introduced on 1 April 2025 meant electric cars had to pay road tax for the first time. That’s why so many EV owners renewed their road tax before 1 April – to get another year free.
And while EVs registered before 31 March 2025 were eligible for one final year of tax-free driving if renewed early, all electric vehicles now face new charges:
All EVs now pay road tax in line with petrol and diesel cars:
- EVs registered between 1 April 2017 and 31 March 2025 pay the £195 standard rate
- EVs registered between 1 March 2001 and 31 March 2017 pay £20 road tax each year
- New EVs registered after 1 April 2025 pay £10 first-year road tax (rising to the £195 standard rate from the second year)
- New EVs registered after 1 April 2025 with a list price over £40,000 pay the ‘luxury car supplement’ of £425 (on top of the standard rate) from the second to the sixth years they’re on the road
- Electric vans now pay £355 annually, matching petrol and diesel equivalents
