eVED explained: the 3p-a-mile pay-per-mile tax on electric cars
Electric Vehicle Excise Duty, or eVED, is a new pay-per-mile tax on electric and plug-in hybrid cars. From 1 April 2028, battery electric cars will pay 3p for every mile driven and plug-in hybrids 1.5p, on top of standard car tax. It is designed to replace some of the fuel duty the government loses as drivers switch away from petrol and diesel.
The government confirmed how eVED will work in July 2026. This guide covers who pays, how much, how mileage will be measured and paid for, and what is still to be decided.
Last updated 27 October 2026. Based on HM Treasury’s eVED consultation response of 13 July 2026. The Autumn Budget on 28 October 2026 may bring further updates.
Key takeaways
- eVED starts on 1 April 2028: 3p a mile for battery electric and hydrogen cars, 1.5p a mile for plug-in hybrids.
- Rates will rise with inflation (CPI) each year from 2029-30.
- It is paid on top of standard car tax, not instead of it.
- You will estimate your mileage when you tax the car and pay upfront or in instalments, then settle up against actual mileage.
- Cars under three years old won’t need separate mileage checks before their first MOT.
- Vans, motorbikes, buses and HGVs are not included at launch.
In this guide
- What is eVED and why is it being introduced?
- Who pays and how much?
- How will eVED be paid?
- How will mileage be checked?
- What about selling a car, refunds and fleets?
- How does eVED fit with other car tax?
- Frequently asked questions
- Sources and further reading
What is eVED and why is it being introduced?
Petrol and diesel drivers pay fuel duty every time they fill up, so they are taxed on how much they drive. EV drivers don’t pay fuel duty, and the government expects fuel duty receipts to fall towards zero by 2050 as more people switch.
eVED was announced at the Autumn Budget in November 2025. After a consultation that ran from November 2025 to March 2026 and received more than 5,000 responses, the government confirmed the design on 13 July 2026. It says eVED is set at roughly half the equivalent fuel duty, so EVs keep a tax advantage over petrol and diesel cars.
Who pays and how much?
| Vehicle | eVED rate from April 2028 |
| Battery electric car | 3p a mile |
| Hydrogen fuel cell car | 3p a mile |
| Plug-in hybrid car | 1.5p a mile |
| Full hybrid and mild hybrid | Not charged |
| Petrol and diesel car | Not charged (pays fuel duty) |
| Vans, motorbikes, buses, HGVs | Not included at launch |
It applies to all UK-registered electric and plug-in hybrid cars, including miles driven abroad. The rates rise with CPI inflation from 2029-30.
| Annual mileage | EV (3p) | Plug-in hybrid (1.5p) |
| 5,000 | £150 | £75 |
| 8,000 | £240 | £120 |
| 10,000 | £300 | £150 |
| 15,000 | £450 | £225 |
The government’s own example is an EV driver covering 8,000 miles a year paying around £240, against around £480 in fuel duty for a petrol or diesel driver covering the same distance.
How will eVED be paid?
eVED is built into the existing car tax system:
- When you renew your car tax, you give the car’s current odometer reading and estimate how many miles you will drive in the next 12 months.
- The DVLA works out your estimated eVED, which you pay upfront or spread over the year.
- Your actual mileage is checked later, mainly using MOT mileage readings, and any difference is settled with a balancing payment or refund.
- If you are driving more than expected, you can top up during the year.
The government says it expects drivers to give accurate estimates to avoid large balancing payments.
How will mileage be checked?
- Cars with an MOT. The MOT mileage reading will be used, so most drivers won’t need an extra check.
- Cars under three years old. In a change from the original proposals, these won’t need a separate official mileage check before their first MOT (four years in Northern Ireland).
- Spot checks. The DVLA will be able to require an official mileage check, including on newer cars, if it suspects fraud or inaccurate reporting.
- Connected cars. The government is developing an optional way to submit mileage directly from a connected car. It has ruled out compulsory tracking devices.
- Tampering. New criminal offences for odometer tampering are planned, along with a requirement for a working odometer.
Accurate mileage records matter more once tax depends on them. If you are buying a used car, check its mileage history. See how to tell if a car has been clocked.
What about selling a car, refunds and fleets?
- Selling. Sellers will be able to settle any outstanding eVED with a top-up payment before they sell. A full automatic refund and reconciliation when a car changes keeper won’t be ready at launch; the government has promised an update by the end of 2026.
- Refunds. There will be a self-certified refund route for hardship claims over £100, with more refund scenarios to be set out by the end of 2026.
- Leasing and fleets. Lease and fleet companies will be able to submit estimated mileage centrally and pay in bulk.
If you are thinking of buying a used EV, see what pay-per-mile means for used EV buyers.
How does eVED fit with other car tax?
eVED is paid as well as standard Vehicle Excise Duty. Since April 2025, EVs have paid car tax: £10 in the first year for new cars, then the standard rate, which is £200 a year in 2026/27. EVs with a list price over £50,000 (for cars registered from April 2025) or £40,000 (for older cars) also pay the expensive car supplement for five years. Our guide to car tax in 2026/27 has the full rates.
Frequently asked questions
When does pay-per-mile for electric cars start?
On 1 April 2028.
How much is eVED?
3p a mile for battery electric cars and 1.5p a mile for plug-in hybrids in 2028-29, rising with inflation from 2029-30.
Do I have to fit a tracker for eVED?
No. The government has ruled out compulsory black boxes. Mileage will be estimated by you and checked mainly against MOT readings.
Does eVED replace road tax for EVs?
No. EVs will pay eVED as well as standard car tax.
Do hybrids pay eVED?
Plug-in hybrids pay 1.5p a mile. Full and mild hybrids that can’t be plugged in don’t pay eVED.
Do miles driven abroad count?
Yes. eVED applies to all miles driven by a UK-registered electric or plug-in hybrid car, including abroad.
Sources and further reading
- GOV.UK: The introduction of eVED, consultation response (July 2026)
- BVRLA: eVED update, 13 July 2026
- AM Online: Government drops plan for eVED mileage checks for newer EVs
- CAR magazine: Pay-per-mile scheme will hit UK drivers in 2028
- What Car?: Pay per mile eVED for company car drivers
- AccountingWEB: eVED explained
About this guide: Rooster is a UK car insurance provider. This guide is general information for UK drivers, not tax advice. eVED is due to start in April 2028 and some details are still being finalised, so check GOV.UK for the latest rules.
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