The UK government has confirmed that its new mileage-based tax on electric vehicles (EVs)—called electric Vehicle Excise Duty (eVED)—will begin in April 2028, charging drivers £0.03 per mile and plug-in hybrid drivers £0.015 per mile on top of standard VED. The rates emerged from a consultation that ran from November 2025 to March 2026 and drew more than 5,000 responses, prompting ministers to simplify several of the scheme’s original requirements. The most significant change scraps a proposed requirement for additional mileage verification checks on vehicles less than three years old, which are not yet subject to annual MOT inspections. Instead, private motorists will submit an odometer reading and an estimated annual mileage figure when renewing their VED, with the DVLA calculating a provisional eVED liability which is later reconciled against official records. A voluntary connected car option will also let drivers submit mileage data directly from their vehicle’s own systems. Fleet operators, rental firms and leasing companies secured their own concessions, including the ability to submit estimated mileage centrally rather than relying on individual drivers and the option to settle any outstanding eVED liability with a top-up payment before a vehicle is sold, addressing industry concerns that unresolved charges could distort residual values. The British Vehicle Rental and Leasing Association (BVRLA) had estimated the original design would cost the fleet sector around £260m (US$348.5m) a year in compliance costs. Despite the numerous adjustments, industry reaction remains decidedly mixed. BVRLA Chief Executive Toby Poston welcomed the simplifications while maintaining opposition to the tax itself, saying: “You can’t create a smooth switch to EVs by making them more expensive to own […] the mechanics of the tax may have improved, but the timing is still wrong.” Meanwhile Vicky Edmonds, Chief Executive of Electric Vehicle Association England, said the wider scheme “remains too
UK confirms new mileage-based EV tax from April 2028 | <b>Automotive</b> World
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