News on Government’s proposed EV mileage tax

Fleets will receive dedicated arrangements for managing the Government’s proposed electric vehicle mileage tax when it launches from 1 April 2028, and fleet-specific eVED rules could reduce the administrative burden.

Under the plans, electric cars will be charged 3p per mile, while plug-in hybrids will pay 1.5p. The Government has now recognised that processing mileage and payments vehicle by vehicle would be impractical for large operators, leasing companies and rental fleets.

Proposed measures include allowing businesses to submit central mileage estimates, make aggregated payments and settle outstanding liabilities before vehicles are defleeted.

The changes should simplify administration, but fleets will still need accurate mileage data and clear responsibility for reporting, reconciliation and tax payments.

The final system is still being developed, but the direction is clear: mileage accuracy will become increasingly important to fleet tax control and whole-life cost forecasting.

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