Electric vs Hybrid cars: what you need to know about taxes

Electric vs Hybrid cars: what you need to know about taxes

If you're considering buying a hybrid or electric car, you may be wondering about car tax. Here are some key things to keep in mind:

Electric cars are exempt from road tax.

This means that you won't have to pay any road tax for an electric car, regardless of its emissions or CO2 output.

Hybrid cars are subject to road tax, but the amount you pay is based on their emissions.

The lower the emissions, the lower the road tax. For example, a hybrid car with emissions of 50g/km will pay £0 road tax, while a hybrid car with emissions of 100g/km will pay £120 road tax.

If you get an electric car through work, you may need to pay some company car tax.

However, the amount you pay will be lower than for a hybrid, and much lower than for a petrol or diesel car. For example, the company car tax for an electric car with a list price of £35,000 is £0, while the company car tax for a petrol car with the same list price is £3,500.

It's possible that some form of tax may be introduced in the future for using electric cars. However, this is not yet the case, and there are no plans to introduce any form of tax for electric cars in the near future.

As you can see, there are some significant benefits to owning an electric car when it comes to car tax. If you're thinking about buying a new car, it's definitely worth considering an electric or hybrid car to save money on road tax.

Additional Things to Keep in Mind:

  • The road tax exemption for electric cars applies to both new and used cars.
  • The company car tax for electric cars is based on the list price of the car, not the amount you actually pay for it.
  • The amount of company car tax you pay for a hybrid car is based on its emissions, not its list price.
  • The government has set a target of making all new cars sold in the UK zero-emission by 2030. This means that it's likely that we'll see even more tax benefits for electric and hybrid cars in the future.

If you're still not sure whether an electric or hybrid car is right for you, I recommend that you do some research and speak to a car dealer. They will be able to help you understand the different options available and choose the best car for your needs.

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