What is eVED?
Electric Vehicle Excise Duty (eVED) is a new mileage-based component being added to Vehicle Excise Duty (VED) in the UK. From 1 April 2028, UK-registered fully electric and plug-in hybrid (PHEV) cars will pay an eVED charge based on mileage, alongside their standard VED. This aims to address declining fuel duty revenues as more drivers switch to cleaner vehicles. (gov.uk)
Key features of the policy
- Fully electric cars will face the full eVED rate, set at 3p per mile, which is approximately half the fuel duty per mile paid by petrol or diesel drivers. PHEVs will pay a reduced eVED rate (half of that for full EVs) to reflect lower emissions and electricity usage. (gov.uk)
- Vehicles driven on licences renewed after 1 April 2028 will be subject to this new regime. (gov.uk)
- Drivers will need to provide an estimated annual mileage when renewing VED, and may need to maintain odometer records to enable adjustments or rebates. Regulations will set out detailed requirements. (gov.uk)
Who this affects most
- Owners of zero-emission battery electric vehicles, and plug-in hybrids. Traditional petrol/diesel cars remain subject only to existing fuel duty and VED. (gov.uk)
- Drivers who frequently renew their VED licence after April 2028—every licence taken out from that date onward for eligible vehicles will include eVED. (gov.uk)
Planning strategies and action steps
Before April 2028
- Estimate annual mileage: If you drive less than average, a low-mileage estimate may reduce your eVED charge. Keep records or track usage to support your estimate.
- Choose an efficient PHEV or full EV: Higher battery-only range and efficient energy use reduce reliance on petrol/diesel, thus minimizing per-mile emissions cost effects.
- Monitor upcoming regulations: The detailed draft legislation published 13 July 2026 sets out odometer and record-keeping rules—review these and ensure your vehicle meets any requirements. (gov.uk)
After introduction
- License renewals: When renewing after 1 April 2028, licences for eligible vehicles will include eVED; ensure mileage estimates are realistic to avoid over-payments or penalties. (gov.uk)
- Maintain accurate odometer records: These may be required to adjust or validate mileage charges. Odometer failure or missing records could trigger additional obligations. (gov.uk)
Example scenarios
| Scenario | Vehicle Type | Estimated annual mileage | Implication |
|---|---|---|---|
| Jane owns a fully electric car and drives 5,000 miles/year | Full EV | 5,000 | eVED ≈ 3p × 5,000 = £150/year (on top of base VED) |
| Tom drives a PHEV 50% of the time in electric mode, about 8,000 miles/year | PHEV | 8,000 | PHEV rate (≈1.5p/mile) → £120/year eVED component |
| Sarah renews licence on 30 March 2028 vs 2 April 2028 | Full EV | 10,000 | If licence spans into post-eVED period, pro rata charges may apply after 1 April 2028; record-keeping is essential |
Bottom line
The introduction of eVED marks a major shift: even emissions-free vehicles will incur tax based on road usage. Smart planning now—especially around mileage estimates, choosing the right electric vehicle, and staying on top of compliance—can help reduce costs and avoid surprises later.