A leading motor finance expert has issued a stark warning that UK drivers could resort to a "desperate tactic" to avoid the government's incoming pay-per-mile tax for electric vehicles.
Finance Chief Warns of 'Clocking' Risk
Dan Reavley, Head of Motor Finance at Anglo Scottish Asset Finance, has cautioned that motorists "feeling the squeeze" from other tax changes may be tempted to illegally wind back their car's mileage. The practice, known as "clocking," would be used to reduce the visible distance travelled when mileage is reported at a vehicle's annual MOT.
Speaking to the Express, Reavley highlighted a key concern: "We need more clarity on how electric drivers will report their mileage, given that the tax will be paid on a per-mile basis." He urged the government to find a solution to prevent this fraud, especially as many Brits will face financial pressure from the Personal Tax Threshold Freeze by 2028.
Government Acknowledges the Threat
The Treasury has confirmed it recognises that the introduction of the new electric vehicle tax, known as eVED, could increase the likelihood of odometer tampering. Officials stated they are "considering further options to mitigate against odometer tampering," which may include strengthening enforcement measures.
The proposed road pricing scheme will require EV owners to pay a modest charge of 3p for every mile they drive. This is in addition to the standard £165 annual Vehicle Excise Duty (VED) rate, which was applied to electric cars for the first time in April 2025.
Balancing Fairness and Incentive
Dan Reavley acknowledged the rationale behind the new levy. "The new tax on electric vehicles feels fair to a certain extent. Electric vehicles use the road too and are just as responsible for its upkeep as traditional fuel-powered cars," he said.
He was quick to point out that an incentive to choose electric power remains. The new per-mile tax is estimated to be roughly half of what drivers of petrol cars will pay each year in combined fuel duty and VED.
The policy is a direct response to the fiscal hole created by the decline in fuel duty revenue as the UK transitions to zero-emission transport. It is predicted to raise £1.9 billion for the Treasury by 2030, helping to fund road maintenance as the nation approaches its 2035 deadline for all new cars to be zero-emission.
