Road tax is an unpopular tax owed by petrol, diesel and EV drivers now – but some people can cut their bill to £0.
Road tax can be cut to £0 if you’re on these DWP schemes (Image: Getty)
Drivers can cut their road tax right down to £0 if they qualify for these DWP schemes.
Road tax – or to give it its proper name, Vehicle Excise Duty – is a tax levied on most drivers which is allegedly used to reinvest in road repairs and maintenance.
It can cost between hundreds of pounds a year and thousands, even for a relatively modest petrol or diesel engine, while in recent years new electric cars have begun to be hit with road tax charges too.
For petrol and diesel cars registered after 2017, road tax begins at £10 and gradually increases to £5,490 per year depending on the amount of pollution the car creates.
For EVs, it costs £195 a year from the second tax payment onwards, though from 2025 an extra £425 a year tax rate was added for cars with a list price of over £40,000.
These charges are not to be confused with fuel duty, which is a tax petrol and diesel drivers pay at the pumps every time they fill up. Right now, 52p is added to the cost of every litre of petrol or diesel in fuel duty, and this is increasing from 2026 as the 5p fuel duty freeze is gradually defrosted by the government.
But there are some drivers who do not have to pay road tax/VED at all – if they have certain health conditions.
While it won’t excuse you from new pay per mile charges, it could see your entire road tax bill waived to £0.
According to the DVLA, you can apply for an exemption from road tax when you apply to tax your car.
It says: “You can get a vehicle tax exemption for one vehicle, if you’re eligible.
“The vehicle must be registered in the disabled person’s name or their nominated driver’s name.
“The vehicle must be used for a disabled person’s personal needs. It cannot be used by the nominated driver for their own personal use.
“You claim the exemption when you apply for vehicle tax.
“If you’re claiming for a vehicle for the first time, you have to claim at a Post Office. You must do this every time you change your vehicle.”
You can apply for exemption from paying vehicle tax 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)
- Scottish Adult Disability Living Allowance
- higher rate mobility component of Child Disability Payment
- War Pensioners’ Mobility Supplement
- Armed Forces Independence Payment.
