The short answer
UK eVED from April 2028: the 3p and 1.5p mileage rates, affected vehicles, VED interaction, mileage estimates and what drivers need to prepare.
From 1 April 2028, the UK will introduce Electric Vehicle Excise Duty (eVED) as a mileage-based supplement to Vehicle Excise Duty (VED). The published introductory rates are 3 pence per mile for battery electric vehicles (BEVs) and hydrogen fuel-cell vehicles (HFCEVs), and 1.5 pence per mile for plug-in hybrid electric vehicles (PHEVs).
eVED will sit alongside existing VED. It is not a replacement for the annual vehicle-tax system, and it is not fuel duty. Drivers will provide an odometer reading and estimate the mileage for the next tax period; the published design says the estimate will be reconciled against the year-end mileage reading.
The charge applies to cars in the published policy, not automatically to every electric van, motorcycle or other zero-emission vehicle. For the wider purchase decision, compare the full running costs in the EV versus petrol ownership calculator, including charging, insurance, servicing, finance and existing VED.
Starts from April 2028
3p or 1.5p per mile
Mileage drives the charge
What is eVED?
eVED is an extension of the existing VED regime. It adds a charge based on the distance driven by qualifying electric, plug-in hybrid and hydrogen fuel-cell cars.
The policy objective is to preserve a usage-related contribution as more drivers move away from petrol and diesel cars. Petrol and diesel drivers contribute through fuel duty at the pump; the government describes eVED as a comparable mileage-based charge for qualifying cars.
That comparison does not mean that eVED and fuel duty are calculated in the same way. Fuel duty is embedded in the fuel price per litre, while eVED is calculated from a mileage estimate and administered alongside VED by DVLA.
Which vehicles are affected?
The published policy identifies these car types:
| Vehicle type | eVED introductory rate from 1 April 2028 |
|---|---|
| Battery electric vehicle (BEV) | 3p per mile |
| Hydrogen fuel-cell electric vehicle (HFCEV) | 3p per mile |
| Plug-in hybrid electric vehicle (PHEV) | 1.5p per mile |
The policy paper describes eVED as applying to cars. Do not automatically extend the car rates to a van, motorcycle or commercial vehicle without checking the final regulations and vehicle classification.
How much could eVED be?
The simple mileage calculation is:
estimated annual miles × eVED rate = estimated eVED for the tax period
| Annual miles | BEV/HFCEV at 3p | PHEV at 1.5p |
|---|---|---|
| 5,000 | £150 | £75 |
| 8,000 | £240 | £120 |
| 10,000 | £300 | £150 |
| 15,000 | £450 | £225 |
These examples show the mileage component only. The driver may still pay the ordinary VED amount applicable to the car, including any relevant first-year, standard or expensive-car rules. The examples also do not forecast the rate uprating that the policy says will occur in later years.
How will mileage be measured?
For renewal and calculation, the published design says drivers will:
- provide an odometer reading;
- estimate mileage for the forthcoming tax period, typically a year;
- pay an upfront amount based on the estimate or spread the payment across the year; and
- have the year-end mileage reading trigger a reconciliation.
The exact notice, payment, correction and treatment of an under- or over-estimate should be checked against final DVLA instructions. The policy paper says mileage information is currently collected at annual MOTs and is available to view for most cars on GOV.UK, but drivers should keep their own records as well.
An accurate estimate matters for budgeting even if the final system permits reconciliation. A driver who regularly travels 15,000 miles should not use a 5,000-mile estimate simply to reduce the first payment; the eventual difference would still need to be settled under the final rules.
Does eVED replace VED?
No. eVED is a mileage supplement that is paid alongside existing VED. A qualifying electric car can therefore have:
- the ordinary VED amount applicable to its registration date and vehicle category; and
- the separate eVED mileage amount from the first applicable renewal after 1 April 2028.
The current DVLA guidance already explains that electric and zero-emission cars are within the vehicle-tax system from April 2025. The future eVED change adds a mileage component; it does not restore a blanket exemption from vehicle tax.
When will a driver first pay?
The policy takes effect on 1 April 2028. HMRC says motorists will need to pay eVED when they first renew VED after April 2028. A vehicle's exact first payment date will therefore depend on its licensing and renewal date, not only on when it was purchased.
Transitional rules may matter where a licence period crosses 1 April 2028 or where multiple licences have been taken out before the change. The draft legislation contains transitional provisions, so drivers should use the final payment notice or DVLA instruction rather than applying a simplified “everyone pays on 1 April” assumption.
Will eVED rise after 2028?
The published policy says the rate will be uprated in 2029/30 and in future years in line with CPI, so that the charge maintains its real-terms value. The policy material does not provide every future year's exact amount in this guide.
For a long-term ownership calculation, use the published introductory rate as the base case and model a separate inflation sensitivity. Do not present a future CPI-adjusted rate as if it were already enacted in a fixed number.
How does eVED affect the EV versus petrol decision?
eVED changes the running-cost comparison, but it does not decide whether an EV or petrol car is cheaper for every driver. A complete comparison should include:
- eVED and ordinary VED;
- fuel or home/public charging costs;
- insurance and finance;
- servicing, tyres and repairs;
- purchase price and resale value; and
- annual mileage and charging availability.
Use the EV versus petrol ownership calculator for a scenario rather than comparing eVED with the entire petrol fuel bill. The UK fuel duty guide covers the separate petrol and diesel duty schedule.
What should an EV owner do now?
Prepare for eVED
- 1Record recent annual mileage from MOT history, service records or a consistent odometer log.
- 2Separate ordinary VED from the future mileage component when comparing vehicle costs.
- 3Use a realistic annual-mileage estimate rather than the lowest possible figure.
- 4Keep evidence for business and private mileage where the car is used for work, but do not assume eVED is the same as an employer mileage allowance.
- 5Check the final DVLA payment and reconciliation instructions before the first renewal after April 2028.
The useful preparation is record quality and realistic budgeting. No separate eVED payment should be made before the official system asks for it, and the current VED and vehicle-registration obligations continue to apply until the new charge takes effect.
Leasing, fleets and changing vehicles
The registered-keeper question matters for leased, rented and company vehicles. A driver may use the car every day without being the person legally responsible for the vehicle-tax account. Fleet operators, leasing companies and registered keepers should agree who collects the opening odometer reading, who submits the estimate, who receives the reconciliation and who passes any cost through the contract. The eVED charge should not be silently treated as employee mileage reimbursement, company-car BIK or fuel expense: those are separate tax and employment questions.
If a vehicle changes keeper, is exported, is written off or is temporarily off the road, the relevant tax period and odometer evidence may need to be split. Keep the handover date, mileage, V5C details, licence period and any fleet statement together. A replacement car may have a different rate because the rate follows the qualifying vehicle type and the mileage period, not the driver's historic estimate. Until the final operational rules are published, do not promise a specific refund, credit or transfer outcome in a customer contract.
Mileage evidence and budgeting controls
Use a consistent mileage convention when modelling ownership. Compare the odometer reading with MOT history, service invoices, charging records and fleet logs, and explain material differences. A business that uses the same car for work and private travel should keep business-mile records for its own reimbursement and tax processes, but those records do not automatically replace the eVED odometer process. Likewise, electricity purchased at home or at public chargers does not reduce the eVED mileage figure.
For a household budget, show eVED as a separate annual line and run a low, central and high-mileage scenario. A 10,000-mile BEV example produces £300 at the published introductory rate; it is not a forecast of later CPI-uprated years or a statement of the total VED bill. When comparing an EV with a petrol car, model the petrol driver's fuel and duty separately and avoid treating the two systems as mathematically identical. Recheck the model when the vehicle, keeper, mileage or official rate changes.
What is confirmed and what remains to check?
Published policy position
- eVED takes effect from 1 April 2028.
- It applies to qualifying BEV, PHEV and HFCEV cars in the published policy.
- The introductory rates are 3p per mile for BEVs/HFCEVs and 1.5p per mile for PHEVs.
- eVED is paid alongside existing VED.
- Drivers provide mileage information and estimate future mileage, with a published year-end reconciliation design.
- Later uprating is linked to CPI from 2029/30 and future years.
Details to verify before relying on them
- final DVLA notices and account/payment journeys;
- transitional treatment for licences crossing 1 April 2028;
- the exact reconciliation and correction process;
- classification of unusual vehicles and commercial vehicles; and
- future CPI-uprated rates.
eVED is not the whole EV running cost
The 3p and 1.5p figures are the published mileage rates for the new component. They do not replace ordinary VED, and they do not include charging, insurance, finance, servicing or other ownership costs.
Frequently Asked Questions
When does eVED start in the UK?
How much is eVED per mile?
Will electric cars still pay VED?
How will the government know how many miles I drive?
Does eVED apply to plug-in hybrids?
Does eVED apply to electric vans or motorcycles?
Who pays eVED on a company or leased car?
Do miles driven abroad count towards eVED?
What happens if my mileage estimate is too low or too high?
This guide reflects HMRC and HM Treasury eVED material available on 20 September 2026. Recheck DVLA and HMRC instructions before making a vehicle-tax payment or changing a long-term ownership calculation.
Official sources
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Review notes and assumptions
Reviewed
2026-09-22
Assumptions
- This guide reflects HMRC and HM Treasury eVED material published or updated through 13 July 2026 and checked on 20 September 2026.
- The rates described are the published introductory mileage rates; the detailed operational process, transitional notices and future CPI uprating should be checked against final DVLA/HMRC instructions.
- eVED is described separately from existing VED, fuel duty, employer-car taxation and local charging costs; a vehicle's total cost depends on all applicable items.