The Government has revealed proposals for its new electric Vehicle Excise Duty (eVED) —and it’s not the digital system many expected. Instead, drivers will estimate their mileage upfront, pay based on that figure, and then submit their actual mileage at year end. MOT readings will serve as the audit mechanism.
Foreign mileage will also be taxed, with ministers rejecting location tracking on privacy grounds. The system is designed as a simple bolt-on to VED, but for fleets it introduces a major new administrative burden around mileage accuracy, reconciliation and compliance.
Fleets should prepare now for a future where mileage becomes the decisive factor in taxation—and where manual reporting could create operational challenges from day one.
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Government outlines proposals for self-reported mileage model for eVED – FleetWise