DRIVERS can avoid paying road tax thanks to a little-known hybrid loophole.
Opting for a vehicle that runs on petrol or diesel and an electric motor can save you hundreds of pounds – but only if it’s from a specific period.
Owners of hybrid cars under £40,000 registered after 1 April 2017 will have to pay £155 in Vehicle Excise Duty (VED) – or road tax – each year.
But those registered between March 1, 2001 and March 31, 2017 fall under an old tax regime, meaning motorists are off the hook.
Hybrids from that era are fully tax-exempt as long as they emit less than 100g/km of CO2, which covers most vehicles.
It puts them in the same category as all-electric cars, which are “zero-rated” but without the downsides.
However, Brits still have to formally pay tax on their car with the DVLA – it just doesn’t cost anything.
So if you’re in the market for a used hybrid car, it’s definitely worth checking what year it’s from, as it can save you some money.
VED, referred to as vehicle tax, road tax or road tax, applies to most vehicles on public roads in the UK and depends on the emissions your vehicle produces.
It is levied and enforced by the DVLA and when you are not using your vehicle you must make a SORN or Legal Off-Road Notification to take it off the road.
The amount you pay depends on the make, model, year and value of your car – and this can change each year as your car ages.
New tariffs come into effect in April 2022 and are more expensive for those with cars that are not as environmentally friendly.
However, they only affect new cars registered after April 1, 2017.
The first half of the cost, the annual road tax, is £165, while the second depends on your car’s CO2 emissions.
Those with larger emissions are subject to higher VED costs.
And cars costing more than £40,000 will have to pay a higher standard one-off fee of £490, which reflects retail price index (RPI) inflation.
But those who produce 0 g/km CO2 emissions pay nothing.
The VED tax brackets for the 2022/23 tax year –
- 1g to 50g – £10
- 51g to 75g – £25
- 76g to 90g – £125
- 91g to 100g – £150
- 101g to 110g – £170
- 111g to 130g – £190
- 131 to 150g – £230
- 151g to 170g – £585
- 171g to 190g – £945
- 191g to 225g – £1,420
- 226g to 255g – £2,015
- over 255g – £2,365
https://www.thesun.ie/motors/8826188/drivers-avoid-road-tax-hybrid-loophole/ Drivers can avoid paying road taxes and save hundreds of pounds by taking advantage of a little-known loophole