A government paper sets out how Electric Vehicle Excise Duty will work for UK drivers, from odometer readings to MOT checks.
Owners of electric, plug-in hybrid and hydrogen cars in the UK will pay a new mileage-based Electric Vehicle Excise Duty from 1 April 2028, according to a government paper published on 28 October 2026. The charge is added to existing road tax and is expected to affect around 5.6 million vehicles in 2028 to 2029.
Drivers of electric cars and plug-in hybrids in the UK will pay by the mile for the first time from 1 April 2028. A government paper published on 28 October sets out Electric Vehicle Excise Duty (eVED), a charge added to existing Vehicle Excise Duty that applies to battery electric, plug-in hybrid and hydrogen fuel cell cars.
The Treasury expects it to affect around 5.6 million vehicles in the financial year 2028 to 2029. Owners start paying when they first renew their road tax after April 2028.
How drivers will pay
At renewal, a driver gives an odometer reading and estimates the miles they will cover in the coming tax period, typically a year. The DVLA, which runs VED, will run eVED too. Motorists can pay upfront on their estimate or spread the cost across the year; a mileage reading at year end then triggers a reconciliation.
The government plans to lean on MOT data to keep the figures honest. Mileage is already recorded at annual MOTs and can be viewed for most cars on GOV.UK, and the Treasury intends to use it to check that what drivers supply is consistent and up to date. For a car already subject to an MOT, that should typically mean no extra steps.
The rates will be uprated in line with Consumer Prices Inflation from 2029 to 2030 and in later years, so the tax keeps its real-terms value.
Why the Treasury wants it
The government's case is one of fairness. All vehicles add to congestion and road wear, it says, but petrol and diesel drivers pay fuel duty at the pump while electric car drivers currently pay no equivalent. The Office for Budget Responsibility has forecast that fuel duty receipts will decline as more people switch, and eVED is meant to replace some of that lost revenue over the long term.
The charge was announced at Budget 2025. A consultation on its implementation closed on 18 March 2026, and the government published its response on 13 July 2026.
Effect on sales, fleets and the law
The OBR assessed in November 2025 that eVED and related Budget measures together would reduce EV sales by around 120,000 between the financial years 2025 to 2026 and 2030 to 2031. That is only 2% of the EV sales expected in that period. The paper adds that some existing owners could keep petrol and diesel cars for longer, which could raise greenhouse gas emissions over time, and that motorists could choose slightly smaller electric vehicles to offset the cost.
For businesses the overall administrative impact is expected to be negligible, though the paper says it will be material for some, particularly large fleets. Leasing and rental firms are to get special arrangements, including the ability to estimate mileage for their vehicles centrally.
Primary legislation amending the Vehicle Excise and Registration Act 1994 will be introduced to apply eVED to all UK-registered electric vehicles and plug-in hybrid cars from April 2028. It will also give the Secretary of State for Transport powers to make the regulations needed to bring the tax into operation.
