Pay-per-mile is really happening: eVED confirmed at 3p a mile from April 2028
After months of consultation, the government has confirmed the final design of Electric Vehicle Excise Duty (eVED) — the first per-mile charge on British motoring. From 1 April 2028, fully electric cars pay 3p a mile and plug-in hybrids 1.5p, collected through odometer readings rather than tracking.
What was confirmed
The scheme, first announced at the 2025 Budget, will work as an extension of ordinary road tax. Drivers of battery-electric, plug-in hybrid and hydrogen fuel-cell cars will estimate their mileage for the year ahead, pay up front or spread the cost, and settle the difference with an end-of-year odometer reading. Rates will be uprated with CPI inflation from 2029/30 so the charge keeps its real-terms value.
Plug-in hybrids get the half rate because they still pay fuel duty on petrol miles. Vans, motorbikes and other non-car vehicles are out of scope at launch.
Why the Treasury is doing it
Fuel duty raises about £24bn a year, and it evaporates as the fleet electrifies. eVED is the first structural replacement: at 3p a mile, a typical 7,000-mile EV year costs about £210 — roughly half what an equivalent petrol driver pays in fuel duty. That gap is deliberate: ministers want EVs to stay clearly cheaper per mile while everyone contributes something to the roads.
The case against
Motor-industry groups and EV advocates argue the timing is wrong — adding a new tax on electric cars two years before the 2030 petrol phase-out weakens the case for switching, and the annual-estimate system adds admin for households that have never dealt with mileage reconciliation. There are also fairness questions for rural drivers, who clock far more miles with fewer alternatives.
What it means for you
If you drive an EV: nothing until April 2028, then roughly £210–£300 a year for typical mileages. Work out your own figure with our EV pay-per-mile calculator, or read the plain-English eVED explainer for the mechanics.
Published 18 July 2026. For general information only — not financial, legal or tax advice.
Frequently asked questions
When does the EV pay-per-mile tax start?
1 April 2028, for battery-electric, plug-in hybrid and hydrogen fuel-cell cars, as an extension of Vehicle Excise Duty.
How much will EV drivers pay per mile?
3p a mile for fully electric cars, 1.5p for plug-in hybrids. A 7,000-mile year comes to about £210. Rates rise with CPI from 2029/30.
Will the government track my car?
No — the confirmed design uses odometer readings with an annual estimate and end-of-year reconciliation. No GPS or telematics.