Pay-per-mile tax for electric cars (eVED)
eVED is planned from April 2028: 3p a mile for electric cars, 1.5p for plug-in hybrids. It is not law yet. How it would work, with an estimator.
Not law yet. Electric Vehicle Excise Duty (eVED) is a planned charge of 3p a mile for battery electric and hydrogen cars and 1.5p a mile for plug-in hybrids, paid with your vehicle tax for licences taken out from 1 April 2028. Draft legislation has been published on GOV.UK, and the Budget on 28 October 2026 said it will be legislated in Finance Bill 2026-27 (OOTLAR para 1.76). Parliament's Finance Bill record shows the Bill's first reading in the Commons on 3 November 2026; when we checked on 11 November 2026 it was awaiting second reading in the Commons, so nothing has been passed. We could not open the Bill text itself to confirm its eVED clauses.
Current law: electric cars pay ordinary vehicle tax (VED) and no mileage charge. They have paid it since 1 April 2025. For tax starting 1 April 2026 to 31 March 2027, an electric car first registered on or after 1 April 2017 pays the standard rate of £200 a year after its first payment, and for 5 years from its second payment it pays £640 if it was registered on or after 1 April 2025 with a list price over £50,000 (the expensive car supplement). One first registered from 1 March 2001 to 31 March 2017 pays £20. Use our car tax calculator for your exact figure.
Estimate eVED on the announced design
Enter the miles you expect to drive in a year. This multiplies them by the draft per-mile rate and shows the payment options in the draft. It is an illustration of a proposal, not a bill: Parliament can change the rates and rules.
Enter your miles and press Estimate.
The announced rates
| Car | Per mile | At 8,000 miles a year |
|---|---|---|
| Battery electric or hydrogen fuel cell | 3p | £240 |
| Plug-in hybrid or range extender | 1.5p | £120 |
The rates are in new section 6B(5) of the Vehicle Excise and Registration Act 1994 as drafted: 3p "for a zero-emission vehicle" and 1.5p "for a plug-in hybrid vehicle" (draft legislation, Schedule 1 para 4). The government's impact note says the rate "will be uprated in 2029 to 2030, and in future years, in line with" CPI (tax information and impact note). Hydrogen cars pay the electric rate and range extenders the plug-in hybrid rate (consultation response, Annex B). Plug-in hybrids pay a lower rate because they still pay fuel duty on the petrol or diesel they use.
8,000 miles is the figure the explanatory note to the draft calls "the average number of miles that an electric vehicle drives annually", identified through the consultation (explanatory note). The impact note expects around 5.6 million vehicles to be affected in 2028-29.
Which vehicles it covers
- Light passenger vehicles only, in practice cars. The draft defines an "eVED vehicle" as a light passenger vehicle (no more than eight seats besides the driver's) that is zero-emission or a plug-in hybrid and is not a special purpose vehicle (draft new s.6A). Zero-emission means CO2 of zero under VERA 1994 s.62(1AA).
- Not vans, buses, coaches or HGVs, and not cars converted from petrol or diesel to electric, when eVED starts (consultation response, Annex B). Status is fixed at first registration and "not affected by any subsequent modification" (draft new s.6A(3)), so the reverse also holds: an electric car or plug-in hybrid later converted to petrol or diesel would still be an eVED vehicle, as the explanatory note says. A hybrid that cannot be plugged in is not covered either: the draft's plug-in hybrid definition needs power that can come from an external electrical source.
- Special purpose vehicles are excluded. The explanatory note gives motor caravans, armoured vehicles, ambulances, hearses and wheelchair accessible vehicles as examples.
- Cars exempt from vehicle tax would still pay eVED. In the draft, a vehicle that would be exempt is not exempt if it is an eVED vehicle, and pays "only by reference to the eVED charge", with its annual VED rate treated as zero (draft new s.2(9) and s.5(2A)). The explanatory note confirms these vehicles "are required to pay the eVED charge element only". This would include cars that are exempt today because of a disability benefit; the consultation response points to the existing VED exemption and to tax reliefs on leasing through schemes such as Motability as continuing support.
- All four UK nations: the draft amends road traffic law for Great Britain and Northern Ireland alike, and DVLA would run it alongside VED.
How it would work
- At each vehicle tax renewal you would give an odometer reading and estimate your miles for the period ahead. The eVED charge would be that estimate times the per-mile rate, added to the VED you already pay (impact note; draft new s.2(8) and s.6B).
- Paying. You could pay for a 12-month licence in one go, or by monthly direct debit at 105% of the eVED charge. A 6-month licence would always be available for an eVED car, costing 110% of its eVED charge, or 105% by direct debit (draft new s.3(2)(c), s.4(2B) and (2C)). So spreading the cost adds 5%, and two 6-month licences paid separately add 10%.
- At the next renewal the estimate would be squared up. Miles actually driven, less the miles you estimated, times the per-mile rate, would be added to or taken off the new charge (draft new s.6B(6)). The government's response says balancing payments are made "at the prevailing rate at the time", which will have risen with CPI from 2029-30.
- Topping up. If you expect to drive more than you estimated, you could pay a top-up during the year to avoid a larger bill later. If you drive less, the credit would normally be carried forward. A refund for financial hardship would be possible where the credit is more than £100 (draft new s.6C(4); the explanatory note says "£100 or more", so the final wording may differ). Budget 2026 says the government will "develop an automated refunds model by 2030", making refunds available in more cases, such as when a motorist overestimates their mileage or sells their car (Budget 2026).
- Checks. MOT odometer readings would be used to verify what you report. The plan to make cars under three years old (four in Northern Ireland) attend extra mileage checks before their first MOT was dropped, though DVLA would be able to require a check where it suspects fraud (consultation response).
- No location tracking. The government has ruled out charging by where you drive, so miles driven abroad would count. Budget 2026 adds an optional "eVED Connect" service that would read mileage from a connected car so you do not have to report it, and a mileage estimation tool at launch.
Worked example
An electric car owner renews in 2028 and estimates 6,000 miles: an eVED charge of £180, or £189 by monthly direct debit. They actually drive 7,500 miles. At the next renewal, 1,500 × 3p = £45 is added to that year's charge, at the starting rate; the actual figure uses whatever rate applies then. Computed by the estimator above, on the draft rates.
When you would first pay, and buying or selling
- First payment: the draft applies to licences taken out on or after 1 April 2028 (Schedule 1 para 47). The impact note says motorists "will need to pay eVED when they first renew their VED after April 2028".
- No getting ahead by stacking licences. If more than one vehicle licence or nil licence is taken out for an eVED car for periods beginning between 1 April 2027 and 31 March 2028, they add up to more than 12 months, and one is still in force at the start of 1 April 2028, DVLA could charge £20 (zero-emission) or £10 (plug-in hybrid) for each complete month it runs after that date (draft para 49).
- Selling. You could top up before selling to settle the miles you drove. A prepaid credit would transfer with the car, and DVLA's vehicle enquiry service would show how much mileage has been paid, so a buyer can compare it with the odometer (consultation response).
- Stolen, destroyed or exported. The draft settles the account on actual mileage where a reading is possible. Where it is not, it uses a pro-rata share of your estimate for the unexpired months, unless DVLA can make a reasonable estimate of the miles driven (draft new s.19ZA and 19ZB).
- Penalties and tampering. The draft creates offences for odometer tampering devices and for driving an eVED car without a working odometer. For the penalty for an untaxed eVED car, the duty it is based on includes the per-mile rate times 8,000 miles (draft Schedule 1 para 11).
Related
- Car tax calculator: the VED you pay now, including the expensive car supplement.
- Company car tax calculator: benefit in kind on a car your employer provides.
- EV salary sacrifice: how leasing an electric car through your employer is taxed.
- Mileage allowance guide: tax-free mileage payments if you use your own car for work.
Frequently asked questions
Is pay-per-mile tax for electric cars law yet?
No. When we checked on 11 November 2026, eVED was a plan with published draft legislation. The Budget on 28 October 2026 said it will be legislated in Finance Bill 2026-27, to start on 1 April 2028. That Bill had its first reading in the Commons on 3 November 2026 and had not passed. Until it does, electric cars pay ordinary vehicle tax only.
How much is eVED per mile?
Under the draft, 3p a mile for battery electric and hydrogen cars and 1.5p a mile for plug-in hybrids and range extenders. The government says the rate will rise with CPI from 2029-30. If passed as drafted, 8,000 miles a year would cost £240 for an electric car or £120 for a plug-in hybrid, on top of vehicle tax.
Does eVED apply to electric vans?
Not when it starts, according to the government's consultation response: vans, buses, coaches and HGVs are out of scope, as are cars converted from petrol or diesel to electric. The draft covers passenger vehicles with up to eight passenger seats, excluding special purpose vehicles such as motor caravans and hearses.
How will DVLA know how many miles I drive?
Under the draft design, if passed, you would give an odometer reading and estimate your miles for the year ahead each time you renew your vehicle tax. The difference would be settled at your next renewal, and MOT mileage readings would be used to check what you report. The government says it will not charge by where you drive, so miles driven abroad would count too.
Do disabled drivers who are exempt from car tax pay eVED?
Under the draft legislation, yes: a car that would be exempt from vehicle tax is not exempt from the eVED charge, so it pays eVED but no annual VED rate. That is the draft as published; it is not law and could change before it is passed.