Chancellor Rachel Reeves has confirmed that millions of drivers will face annual mileage checks under a new law introducing a 3p-per-mile car tax for electric vehicles (EVs) from April 2028. However, Paul Hollick, chair of the Association of Fleet Professionals (AFP), has urged the government to delay the policy by at least two years, arguing that a 2030 start date would be more appropriate.
Annual mileage checks confirmed
The Treasury confirmed that motorists will have their mileage checked annually, typically during their MOT as is already the case, or for new cars, around their first and second registration anniversary. The Labour government acknowledged that the introduction of the tax "may increase the likelihood of motorists choosing to clock their vehicles" and said it was exploring ways to mitigate this risk.
From April 2028, electric car drivers will pay a road charge of 3p per mile, while plug-in hybrid drivers will pay 1.5p per mile, with rates increasing annually with inflation. According to the Office for Budget Responsibility (OBR), the new tax is about "half the fuel duty rate paid by drivers of petrol cars."
Industry calls for delay
Paul Hollick said: "We strongly believe the government should look at ways of delaying and simplifying this proposal while reducing the burden on fleet operators. The electric car market is still stabilising and fleets remain negatively affected by residual value issues, Zero Emissions Mandate volumes and charging difficulties."
He added: "Introducing eVED in 2028 is likely to slow adoption and increase costs. We believe moving its implementation to 2030 better aligns with fleet cycles and avoids destabilising both the new and used markets."
Driver concerns
Stephen Walton, 46, from Crewe, bought an electric car for his wife in July 2023 because "she wanted to do what's right by the environment." He now said owning an EV "just doesn't make financial sense." He commented: "It's just a nightmare. I've paid more to do the right thing and I'm being penalised for it. This will be my first and last electric vehicle because there are no fiscal perks to being an EV car driver."
