How will EV tax work in 2028?
From April 2028, electric cars and plug-in hybrids will pay a new mileage-based road tax called eVED (electric Vehicle Excise Duty). Here's exactly how the government's pay per mile system will work.
The annual process: step by step
Record your odometer reading
When you renew your road tax each year, you'll enter your current odometer reading into the DVLA system. This establishes your starting point for the year.
Estimate your annual mileage
You'll provide an estimate of how many miles you expect to drive over the coming year. Don't worry about being exact – there's a reconciliation process at year end.
Example: If you estimate 8,000 miles in an electric car, your eVED would be £240 (8,000 × 3p), plus £195 standard VED = £435 total.
Choose how to pay
You can pay for your estimated mileage in three ways – the same options available for standard VED today:
- Monthly via Direct Debit
- Bi-annually (every 6 months)
- Annually in one payment
Drive as normal
There's no GPS tracking, no black box, and no requirement to report where or when you drive. Simply use your car as you normally would throughout the year.
MOT mileage verification
When your car goes for its MOT test, the garage records your odometer reading. This is already standard practice – it's how the government will verify your actual mileage.
New cars without MOT: If your car is under 3 years old and doesn't need an MOT yet, you'll attend a free annual mileage check at an accredited provider (likely MOT garages). The government will fund these checks.
Year-end reconciliation
Your actual mileage is compared to your estimate:
Drove more than estimated?
You pay the difference. The government plans to let you spread this into next year's payments.
Drove less than estimated?
You receive a credit towards next year's eVED bill.
How MOT mileage tracking works
The government has explicitly ruled out GPS tracking or in-car monitoring. Instead, mileage verification relies on the existing MOT infrastructure.
MOT garages already record odometer readings as part of every test
This data is sent to DVLA and appears on MOT certificates
The registered keeper is responsible for ensuring their odometer works correctly
The government is considering additional anti-tampering measures for odometers
Example scenarios
Scenario 1: You estimate accurately
Estimated
8,000 miles
Actual
8,200 miles
Year-end adjustment
+£6 owed
200 extra miles × 3p = £6 added to next year's bill.
Scenario 2: You overestimate significantly
Estimated
12,000 miles
Actual
8,000 miles
Year-end adjustment
£120 credit
4,000 fewer miles × 3p = £120 credit towards next year.
Scenario 3: You underestimate significantly
Estimated
6,000 miles
Actual
15,000 miles
Year-end adjustment
£270 owed
9,000 extra miles × 3p = £270. Can be spread into next year's payments.
Common questions
What if I sell my car mid-year?
Any pre-paid mileage credit (or deficit) stays with the vehicle and transfers to the new owner. The eVED status will be visible via DVLA systems, and the government expects this to be reflected in the sale price.
What about miles driven abroad?
Miles driven abroad in a UK-registered car count towards your eVED total. This is the same principle as fuel duty – you pay UK tax regardless of where you drive. There's no mechanism to exclude foreign miles.
Can I be penalised for wrong estimates?
No. The estimate is just that – an estimate. You won't be fined for getting it wrong. The reconciliation process simply adjusts what you owe based on actual miles driven. However, deliberately falsifying odometer readings is a criminal offence.
What if my odometer breaks?
The registered keeper is responsible for ensuring the odometer functions correctly. If it breaks, you should get it repaired promptly. The government is consulting on how to handle edge cases like this, but a broken odometer would likely be flagged at MOT.
Is this the same as pay-per-mile insurance?
No, they're completely separate. Pay-per-mile insurance is a private product offered by insurers. eVED is a mandatory government tax. You might have both, but one doesn't affect the other.
Calculate your estimated tax
See exactly how much you'll pay based on your annual mileage.
Use the calculator