Drivers could save £200 a year on car tax fees in ‘big incentive’

Motorists could save almost £200 a year on car tax fees by making one decision, according to experts at Instavolt.

Road users can cut down on paying road tax fees by switching to an electric vehicle the next time they come to buy a new car.

Although upfront costs can be expensive and public charging fees are on the rise, experts still see EVs as a way to save money in the long run.

EV owners don’t pay any Vehicle Excise Duty (VED) rates meaning owners can save a staggering £180 a year.

City clear air zone schemes such as London’s Ultra Low Emissions Zone (ULEZ) expansion will also not be an issue meaning motorists are not slapped with extra punitive charges.

Adrian Keen, CEO of InstaVolt said cutting car tax rates was still a “big incentive” for many to make the transition.

He told Express.co,uk: “Whilst electric vehicles have higher upfront costs than petrol and diesel ones, a string of studies have found they are cheaper to run over their lifetime due to lower maintenance costs and lower annual road tax or, in the case of company car drivers, benefit-in-kind tax.

“Whether as a company car driver or a consumer, the amount of tax you pay is lower than a fossil fuel car.

“Because of these tax benefits, many companies are choosing to electrify their fleets of company cars, and thanks to chargepoint operators such as InstaVolt, the fast-growing network of rapid EV chargers is giving EV drivers and fleet managers the confidence to make the switch.

“This is good news for those companies making the switch, but the environmental benefit is significant, too. 

“The current annual flat rate of road tax for the 2023/2024 tax year is £180, but fully electric cars pay nothing. Saving the best part of £200 a year is a big incentive for many drivers, alongside the wider savings that come with owning an EV.”

But, motorists need to take advantage of the benefits while they are still available with changes on the horizon.

Free tax is not likely to be around for too much longer with Chancellor Jeremy Hunt also pledging to issue fees on EV owners from April 1 2025.

In the 2022 Autumn Budget, Hunt confirmed the fees would be introduced to make the “motoring tax system fairer”.