Car tax guide

Pay per mile car tax UK

The UK government has confirmed a new mileage-based Electric Vehicle Excise Duty, often searched for as pay per mile car tax, pay per mile tax UK, or pay per mile road tax. It starts on 1 April 2028. This guide explains who will pay, how it will work, and how to estimate the annual cost.

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Policy confirmed · Updated 18 July 2026

Electric Vehicle Excise Duty starts on 1 April 2028

HMRC published the eVED implementation measure and draft legislation on 13 July 2026. The launch rates are 3p per mile for battery-electric and hydrogen fuel-cell cars, and 1.5p per mile for plug-in hybrid cars.

Drivers will first pay when they renew their VED on or after 1 April 2028. Some detailed regulations and operational guidance still need to follow before launch.

Read the official eVED policy paper ↗

Pay per mile road tax, UK pay per mile tax, or eVED?

These phrases are usually describing the same confirmed change. People may search for pay per mile road tax, road tax pay per mile, pay per mile road tax UK, UK pay per mile tax, or pay per mile car tax UK. The official policy name is Electric Vehicle Excise Duty.

It is not a general road pricing scheme for every car at launch. eVED is a mileage-based addition to VED for battery-electric, hydrogen fuel-cell and plug-in hybrid cars. Ordinary petrol, diesel and standard hybrid cars continue to pay fuel duty when fuel is bought.

What is pay per mile car tax?

The official name is Electric Vehicle Excise Duty, or eVED. It is a mileage-based addition to Vehicle Excise Duty for UK-registered battery-electric, hydrogen fuel-cell and plug-in hybrid cars from 1 April 2028.

The policy is designed to replace some fuel-duty revenue as more drivers move to electric vehicles. Petrol and diesel drivers already pay fuel duty through the pump, so the government wants EV and plug-in hybrid drivers to make a usage-based contribution as well as paying ordinary VED.

It is not a tracker-based road pricing scheme. Drivers will provide an odometer reading and estimate their mileage when renewing VED, pay upfront or across the year, then reconcile the estimate against a later reading.

What changed for electric and hybrid car tax already?

EVs now pay VED

From 1 April 2025, electric, zero and low emission vehicles became subject to vehicle tax.

New EV first year

Electric cars registered from 1 April 2025 pay the lowest first-year rate, then the standard rate after that.

Older EVs

Electric cars registered from April 2017 to March 2025 moved to the standard annual VED rate.

Hybrid discount removed

The former annual discount for hybrids and alternatively fuelled vehicles has been removed.

Which vehicles are in scope?

The confirmed measure covers UK-registered battery-electric, hydrogen fuel-cell and plug-in hybrid cars. Other vehicle types, including vans, buses, coaches, motorcycles and HGVs, are not in scope when eVED starts.

Standard hybrids are treated differently from plug-in hybrids. If a car cannot be plugged in and its external energy source is petrol or diesel, it will not pay eVED because those miles already involve fuel duty.

The government says it will publish a fuller list of vehicles subject to eVED in due course, so the exact operational rules may still change.

How mileage could be checked

Motorists will provide an odometer reading and estimate mileage for the year ahead when renewing VED. They can pay upfront or spread payments across the year, with a later reading used to reconcile any difference.

For cars already old enough to need an MOT, the government intends to use MOT mileage data where applicable to check that readings are consistent and current. Detailed arrangements for newer cars and other mileage checks still need to follow.

That is why a calculator based on current odometer mileage and the most recent MOT mileage can give a useful estimate before eVED begins.

Trust and sources

This guide was last reviewed on 18 July 2026 after HMRC published the eVED implementation measure and draft legislation. eVED is confirmed government policy, but some detailed regulations and operational guidance may still change before launch.

Useful checks include GOV.UK’s guidance on vehicle tax for electric and low-emission vehicles, HMRC’s 13 July 2026 policy paper on Electric Vehicle Excise Duty, the government’s consultation response.

GOV.UK guidance says electric, zero and low emission vehicles have paid vehicle tax since 1 April 2025. The July 2026 eVED publication confirms the 3p and 1.5p launch rates, a 1 April 2028 start, mileage reporting alongside VED renewals, and later reconciliation. Rates will rise with CPI from the 2029–30 tax year onwards.

Ready to test your own mileage?

Estimate your pay per mile car tax

Use the calculator to compare current VED, confirmed EV and plug-in hybrid mileage charges, fuel-tax equivalents, and an annual mileage estimate from your MOT.

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