From April 1, 2028, the United Kingdom will impose a mileage tax on electric vehicles with the declared purpose – as reported by the Office for Budget Responsibility (OBR) – of compensating for the lost revenue from fuel excise duties linked to the spread of battery models.
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Called the Electric Vehicle Excise Duty (eVED), this measure – it reads online – will apply to both battery electric cars and plug-in hybrids, as well as those equipped with hydrogen fuel cells (Hfcev). The tax rates will be 3 pence per mile (equivalent to 4.4 – 4.8 euro cents per km) for battery electric vehicles (Bev) and 1.5 pence per mile (2.2-2.4 cents per km) for plug-in hybrid models (Phev). Over 100 km, the impact will therefore range from 2.2 to 4.4 euros.
According to what has been established by the Government, the rate will be adjusted between 2029 and 2030 and in subsequent years, to be in line with consumer price inflation, in order to ensure that the tax maintains its real value. To renew the electronic road tax (eVED) which is managed by the Driver and Vehicle Licensing Agency (Dvla) and to simultaneously calculate the amount of eVED to be paid, drivers will have to: provide the odometer reading of their car and estimate the mileage traveled over a one-year period. Motorists will pay an advance amount based on their estimate or may spread the payment over the year, with the end-of-year mileage reading triggering a reconciliation.
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Currently, data relating to car mileage is collected during annual inspections and is generally available on the Gov.UK website. Where applicable, the Government intends to use this data to ensure that the mileage declared by users is consistent and up to date. This means that if a car has already undergone inspection, generally no further checks will be necessary. According to official estimates, the eVED measure should bring a revenue benefit to the Treasury of £1.1 billion starting from the 2028-2029 fiscal year, rising to £1.435 billion in 2029-2030 and £1.865 billion in 2030-2031.
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