Drivers fear new EV tax will add complexity to fleet mileage claims

A quarter of business drivers believe the Government's new electric vehicle excise duty (eVED) system will make claiming business mileage more difficult, highlighting fresh concerns over the administrative impact of the policy.

Research from Venson Automotive Solutions found that 26% of drivers expect the new pence-per-mile tax, due to be introduced from April 2028, to significantly complicate business travel expense claims. The survey also found that 62% believe the tax will discourage drivers from switching to an electric vehicle, while 24% said it would have a significant influence on their next vehicle choice.

The Government has introduced several measures to ease the burden on fleets, including allowing estimated mileage readings, bulk payments and the ability to settle outstanding liabilities before vehicles are defleeted. However, it has acknowledged that the reporting requirements could be significant, particularly for larger fleets.

Businesses already using telematics, connected vehicle data or digital mileage management systems are likely to be better placed to manage the additional administration, while clear communication with company car drivers will be essential to minimise confusion as the new tax approaches.

Similar Stories

Back to blog