HMRC has confirmed a 15p per mile rule for EV drivers which starts next week. The Labour Party government's tax arm has released its fuel advisory rates from June 1, in its latest quarterly update.
New Rates Announced
The update came on Friday, May 22, ahead of the changes effective from the start of the sixth month. HMRC states that those using public chargers will be charged 15p per mile, while those with home chargers will face a rate of 7p per mile. The EV rates, which vary by charging location, accompany the launch of new petrol and diesel fuel rates. These rates are reviewed and updated each quarter.
Separate from Pay-Per-Mile Car Tax
The fuel rates are separate from the pay-per-mile car tax system being introduced by Chancellor Rachel Reeves in 2028, known as the eVED system. The Electric Vehicle Association (EVA) believes the scheme should be delayed by two years from April 2028 to address potential issues.
EVA CEO Vicky Edmonds stated: "EVA England is calling on the Government to delay the introduction of eVED until at least 2030, redesign the scheme so drivers pay based on actual mileage rather than estimates, and ensure it is introduced alongside meaningful action on charging costs and affordability."
Concerns Over Plug-In Hybrid Assumptions
Speaking to Auto Express at an industry panel in Parliament, Silviya Barrett, director of policy and research at the Campaign for Better Transport, said: "The Treasury has assumed plug-in hybrids will drive in EV mode 50 per cent of the time, for simplicity… If you’re only driving in electric mode 20 per cent of the time, you’d be overpaid eVED as you’d already be paying for the fuel duty for the other 80 per cent."
Barrett added: "This is the benefit of using a telematics-based system as it’s more precise. You’d be able to tell what proportion of people are driving in electric mode, versus petrol."
Fuel Duty Frozen
Elsewhere, Chancellor Reeves has decided to keep fuel duty frozen for the rest of the year amid the Middle East war. She commented: "The war in Iran is pushing up fuel prices here at home, but after strong growth at the beginning of the year, I am stepping in to protect people at the pump."
