Drivers can avoid paying road tax and save hundreds of pounds using a little-known loophole – but there's a catch

DRIVERS can avoid paying road tax thanks to a little-known hybrid loophole.

Opting for a vehicle which runs on petrol or diesel and an electric motor could save you hundreds of pounds – but only if it is from a certain period.

Owners of hybrid cars under £40,000 registered after April 1, 2017, must pay £155 in Vehicle Excise Duty (VED) – or road tax – every year.

But those registered between March 1, 2001 and March, 31, 2017, fall under an old tax system, meaning motorists are off the hook.

Hybrids from this period 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 fully electric cars, which are "zero-rated", but without the disadvantages.

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What happens if I don’t tax my car and are there any exemptions?

Brits do, however, still have to formally tax their car with the DVLA – it just costs nothing.

So if you're in the market for a second-hand hybrid car, it's definitely worth checking what year it's from as it could save you some cash.

VED, referred to as vehicle tax, car tax or road tax, applies to most vehicles on public roads in the UK and depends on the emissions your vehicle produces.

It’s collected and enforced by the DVLA, and if you aren’t using your vehicle, you must make a SORN, or Statutory 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 rates come into effect in April 2022 and are more costly to those with cars that aren't so eco-friendly.

But, they only impact new cars registered from April, 1, 2017 onwards.

The first half of the cost, annual road tax, is a payment of £165, while the second depends on your car's CO2 emission.

Those with larger emissions are subject to higher VED costs.

And cars that cost more than £40,000 must pay a higher one-off standard fee of £490, in line with retail Price Index (RPI) inflation.

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But those that produce 0g/km of CO2 emissions don't pay anything.

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

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