EV pay-per-mile tax remains on track for April 2028

October 28, 2026

Electric vehicle drivers are still set to face a new mileage-based tax from April 2028, with the Government confirming further work on the scheme following the 2026 Autumn Budget.

The Electric Vehicle Excise Duty (eVED) is designed to replace some of the fuel duty revenue lost as drivers move away from petrol and diesel cars. Under the announced plans, battery-electric cars will pay 3p per mile, while plug-in hybrids will pay 1.5p per mile during the 2028/29 financial year.

For an electric car covering 10,000 miles annually, the charge would amount to £300, before any subsequent rate changes. The levy will apply in addition to Vehicle Excise Duty. To outline the current VED duties for EVs, we've made a table below.

Electric car category	Annual VED
New EV — first year after registration	£10
EV registered from 1 April 2017 onwards — standard rate	£200
EV registered between 1 March 2001 and 31 March 2017	£20
EV with list price over £50,000, registered from 1 April 2025	Additional £440/year for 5 years, starting in year two

The Government is developing tools to help drivers estimate and declare their mileage, alongside options for automated reporting. Further guidance for large fleet operators is expected later this year.

Fleet managers should begin assessing the potential impact on vehicle budgets, mileage forecasts and employee communications as implementation details emerge.

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