Electric Vehicle Excise Duty (eVED) is due to start on 1 April 2028 as a mileage-based charge for battery-electric, hydrogen fuel-cell and plug-in hybrid cars. The policy uses recorded or estimated mileage rather than in-car tracking.
What are the published rates?
The published measure sets an introductory rate of 3 pence per mile for battery-electric and hydrogen fuel-cell cars and 1.5 pence per mile for plug-in hybrids. The system is intended to use odometer readings or mileage estimates, with reconciliation when an updated reading becomes available.
No tracking device is proposed
The government states that eVED is not designed around trackers or continuous journey monitoring. Administration details still matter, particularly for incorrect estimates, overseas mileage, vehicle sales and cars that travel very different annual distances.
What should buyers budget for?
Drivers comparing petrol, hybrid and electric cars should include the new duty alongside electricity or fuel, Vehicle Excise Duty, insurance, servicing, tyres and finance costs. A mileage-based charge can affect a high-mileage driver more than someone who drives occasionally.
Keep an eye on implementation
Tax measures can change before or after implementation. Check GOV.UK for current rates, start dates and administration rules before relying on a long-term running-cost estimate.
Planning a purchase?
Use a realistic annual mileage and run at least two cost scenarios. Small changes in mileage, charging price or insurance can outweigh a headline saving elsewhere.
Primary sources
This article is an original summary. Check the official sources for the latest position.