A new mileage-based tax for electric vehicles will apply across the UK from April 2028, affecting owners of battery electric vehicles, plug-in hybrids and hydrogen-powered cars. The measure, known as Electric Vehicle Excise Duty (eVED), will introduce a charge linked to the distance vehicles travel.
The policy aims to replace part of the fuel duty revenue expected to decline as more motorists move away from petrol and diesel cars. According to HM Treasury, the charge will be administered through the existing Vehicle Excise Duty system, with drivers providing mileage information when renewing their vehicle tax.
How the New Electric Vehicle Charge Will Work From 2028
From 1 April 2028, owners of eligible vehicles will pay a mileage-based charge alongside their existing Vehicle Excise Duty arrangements. According to HM Treasury, battery electric vehicles and hydrogen fuel cell vehicles will be charged at 3 pence per mile, while plug-in hybrid vehicles will face a rate of 1.5 pence per mile.
The system will require motorists to provide an odometer reading and estimate their mileage for the upcoming tax period. Payments can be made upfront based on the estimate or spread across the year, with a later mileage reading used to reconcile the amount paid.
HM Treasury said the Driver and Vehicle Licensing Agency (DVLA) will administer eVED. Mileage information collected through annual MOT tests will be available for most vehicles, allowing the government to check whether user-provided figures are consistent and up to date.
The government introduced the measure as electric vehicle ownership increases and fuel duty receipts are expected to fall. According to HM Treasury, petrol and diesel drivers currently contribute through fuel duty, while electric vehicle owners do not pay an equivalent charge linked to road use.
The new tax is expected to affect around 5.6 million vehicles in the financial year 2028 to 2029. Drivers will first pay eVED when they renew their Vehicle Excise Duty after the measure comes into effect.
Older Drivers Among the Groups Affected by the Transition
Research cited by Carwow shows that older motorists represent a significant share of current electric vehicle owners. Around 500,000 electric vehicle drivers in the UK are aged 55 or above, making this age group one of the largest groups among EV owners.
Interest in switching to electric vehicles differs between age groups. According to Cox Automotive research, around 16% to 21% of people aged over 65 were considering moving to an electric vehicle. The same research found that 37% of respondents aged 65 and over disagreed that electric vehicles are better for the environment, compared with 19% of 18 to 24-year-olds.
The introduction of eVED adds a new running cost for electric vehicle owners as the UK continues its transition towards zero-emission vehicles. According to HM Treasury, the measure was announced at Budget 2025 and followed a consultation on its implementation that closed in March 2026.
The government has stated that the tax will apply regardless of drivers’ characteristics. HM Treasury said it does not currently hold data on the protected characteristics of individuals affected by the measure and cannot assess whether there are disproportionate impacts on specific groups. The policy will be monitored through DVLA vehicle licensing data and communication with government and industry stakeholders after its introduction.
