What is eVED?
eVED — Electric Vehicle Excise Duty — is the UK's new pay-per-mile tax for electric cars, starting 1 April 2028: 3p a mile for fully electric cars and 1.5p a mile for plug-in hybrids, collected through odometer readings as an extension of ordinary road tax.
How eVED works
From 1 April 2028, drivers of battery-electric, plug-in hybrid and hydrogen fuel-cell cars will pay a mileage charge on top of their normal VED. You give an odometer reading and an estimate of the year ahead's mileage, pay up front or spread it over the year, and an end-of-year reading reconciles the difference — no GPS tracking involved. Rates are 3p a mile for fully electric cars and 1.5p for plug-in hybrids (they still pay fuel duty on petrol miles), uprated with CPI inflation from 2029/30.
What it costs in practice
A typical 7,000-mile year in an EV comes to about £210; 10,000 miles is £300. For comparison, a petrol driver pays roughly 6p a mile in fuel duty, so an EV still runs cheaper per mile even after eVED — which is exactly the line the Treasury uses to defend it. The charge was announced at the 2025 Budget and the final design was confirmed in July 2026 after consultation — see our news piece on the confirmed plans.
Why it matters
Fuel duty raises around £24bn a year and shrinks as the country goes electric; eVED is the first structural answer to that hole. Critics — including much of the motor industry — argue it blunts the incentive to switch to EVs just as the 2030 petrol phase-out approaches. Work out what it would cost you on the EV pay-per-mile calculator.
Plain-English guide for general information only — not financial, legal or tax advice. Last reviewed 18 July 2026.
Frequently asked questions
What does eVED stand for?
Electric Vehicle Excise Duty — a new mileage-based charge for electric cars, built as an extension of the existing Vehicle Excise Duty (road tax) system, starting on 1 April 2028.
How much is eVED per mile?
3p a mile for fully electric cars and 1.5p a mile for plug-in hybrids. A typical 7,000-mile year in an EV would cost about £210. Rates rise with CPI inflation from 2029/30.
How will it be collected?
Through odometer readings, not tracking. You estimate your mileage for the year, pay up front or spread the cost, and an end-of-year reading reconciles the difference.
Why tax electric cars per mile?
Fuel duty raises around £24bn a year and disappears as drivers switch to electric. Petrol drivers pay roughly 6p a mile in fuel duty, so ministers argue 3p a mile keeps EVs cheaper to run while everyone contributes to roads.