low-and-zero-tax-cars_with-opacity

Low or Zero Road and Fuel Tax
Electric Cars

One of the biggest frustrations of many drivers in the UK is the high cost of road tax which can contribute significantly to the running costs of a vehicle. There are a variety of road tax bands depending on which type of vehicle you own and drivers in major cities can often end up paying particularly  high road tax charges. One of the benefits of driving an electric car is that they are generally low road tax cars and EV drivers often pay little or no road tax on their electric vehicle.

We have put together a special car tax calculator so that you can compare your current vehicle to some of the most popular EVs on the road to see how much you can save. Try our calculator today and find out how much money you could keep in your back pocket by switching to an electric vehicle.

Road tax on:

100% electric vehicles

If you switch to a 100% zero emission car costing up to £40,000 and with zero tailpipe emissions, you’ll be exempt from all road tax in the UK. This is part of the UK government’s incentive to help drivers make the switch to more eco-friendly vehicles and could save you hundreds, if not thousands, of pounds a year simply on road tax. And that’s not even factoring in additional savings on petrol consumption, maintenance and repair and servicing charges.

Find out more about the benefits of electric vehicles in our guide.

Plug-in hybrid vehicles

While plug-in hybrid vehicles don’t offer the same road tax savings as zero emissions cars, they can still help drivers save on road tax.

To see how much you could save by driving a plug-in hybrid rather than a traditional petrol powered vehicle, check out our tax savings calculator. You’ll be able to quickly and easily work out how much you could save by switching to a plug-in hybrid car.

Hydrogen fuel cell cars

Hydrogen fuel cell cars generate their electricity by combining hydrogen and oxygen in a specially designed fuel cell stack. This electrochemical process means that these cars offer fully electric powered driving and have zero emissions with the tailpipe emitting only water vapour and air. Because hydrogen fuel cell cars don’t have any harmful emissions, the owners of these cars can benefit from zero or lower car tax charges, depending on the car.

Find out more about how hydrogen fuel cell cars work and why they could be right for you in our guide to the different types of EVs on the market.

low-and-zero-tax-02

Save on UK fuel tax with an electric vehicle

Electric vehicle owners also save on fuel tax in the UK. For the year 2019-2020 the current rate of UK fuel tax is 57.95 pence per litre for petrol, diesel and biofuel. Electricity is far cheaper, however, and the tax rate for electricity used for recharging an EV at home is offered at the reduced rate of VAT of just 5%. If you drive on average just a few times a week, the accumulative savings in both fuel tax and consumption costs can be huge.

Explore more about the reduced rate of charging your EV.

Guide to charging

See how much you could save

Compare a wide range of electric vehicles with similar petrol and diesel models to see how much you could save over the long term.

Check out our special electric car tax calculator here.