Road tax: Drivers urged to check if they are paying too much

Vehicle Excise Duty (VED), also known as road tax or car tax, is a yearly tax paid by owners of cars, motorbikes, vans and other vehicles registered in the UK.

However, some motorists may be unaware that their vehicles are exempt from the tax and could bring their annual bill down to £0.

Khari Findlay, car expert at Big Motoring World, is calling on drivers to check whether any of the road tax exemptions apply to them.

Who is exempt from paying road tax?

Electric Car Owners

Electric Vehicles (EVs) are exempt from road tax. To fulfil the criteria, the electricity must come from any of the following:

• an external source, such as a private or public charge point
• an electric storage battery not connected to any source of power when the vehicle is moving
• hydrogen fuel cells

Historic / Vintage Car Owners

A car that’s older than 40 years old is classed as a historic vehicle and, as such, is also exempt from road tax.

If your vehicle was built before 1 January 1983, you can stop paying vehicle tax from 1 April 2023.

However, if you do not know when your vehicle was built, but it was still registered before 8 January 1983, then you do not need to pay vehicle tax from 1 April 2023.

Disabled drivers

There is a range of financial support specifically for disabled drivers. You can apply for a road tax exemption if you get the:

• higher rate mobility component of Disability Living Allowance (DLA)
• enhanced rate mobility component of Personal Independence Payment (PIP)
• enhanced rate mobility component of Adult Disability Payment (ADP)
• higher rate mobility component of Child Disability Payment
• War Pensioners’ Mobility Supplement
• Armed Forces Independence Payment

For the exemption to be valid, the vehicle must be registered in the disabled person’s name or their nominated driver’s name. It must also only be used for the disabled person’s personal needs.

It’s also important to note that you can only use your exemption on one vehicle at a time, even if you own more than one car.

Plug-in Hybrid Electric Vehicle (PHEV) Owners

While hybrid cars aren’t completely exempt from road tax, they may qualify for lower tax band rates due to being more environmentally friendly.

The cost of owning a PHEV depends on its CO2 emissions, ranging from £0 to £110 for the first year and £155 for every subsequent year.

How to claim a road tax exemption

To find out if you are eligible for a car tax exemption you can visit the gov.uk website.

Darren Miller, Marketing Director at Big Motoring World, adds: “With the rising cost of living, drivers are feeling the squeeze as rates for road taxes once again increased across the board this year.

“Fortunately, exemptions are available for disabled drivers to help with this rising cost. It also pays off to upgrade to a newer car or make the switch to hybrid and electric, as lower emissions put you in a lower price band.

“However, it’s important to remember that qualifying for an exemption is not enough, as you will still need to make an official claim before you can reduce your tax bill.

“Just because your vehicle is exempt from road tax, you shouldn’t forget to register it with the DVLA if you will be using it on a public road or file a Statutory Off Road Notification when your vehicle is ‘off-road’ for a certain period.”