The UK Government has announced how it plans to implement the Electric Vehicle Excise Duty (eVED) as an extension of the current Vehicle Excise Duty (VED) regime.
From 1 April 2028, eVED a new mileage-based charge will apply to BEVs, PHEVs, and HFCEVs that are cars.
The rates of tax will be 3 pence per mile for BEVs and HFCEVs and 1.5 pence per mile for PHEVs. It will be uprated in 2029 to 2030, and in future years, in line with Consumer Prices Inflation (CPI).
In practice, this means that drivers will have to provide an odometer (mileage) reading from their car and estimate their mileage for the forthcoming tax period (typically a year).
Motorists will pay an upfront charge based on their estimate or spread their payment across the year, with the year-end mileage reading triggering a reconciliation.
Where applicable, the government intends to use this data to ensure that user-supplied mileage is consistent and up to date. This means if a car is already subject to an MOT, there will typically be no additional steps for checks.
The UK Government said that it expects to impact around 5.6 million vehicles in the financial year 2028 to 2029. Motorists will need to pay eVED when they first renew their VED after April 2028.
Dr Vicky Edmonds, CEO of EVA England, said:
“Introducing a new and complex scheme in 2028, that will provide no recourse for drivers worried about overpaying for their mileage until 2030, makes no sense. eVED must work for drivers from day one of its introduction.
“It must be delayed until that is the case, and until the structural reforms we so badly need to address the charging divide are firmly in place.”
