Pay-per-mile car tax is announced for April 2028
Updated 26 October 2026. There is no pay-per-mile charge on a car tax renewal today. The government has published Electric Vehicle Excise Duty (eVED), a mileage charge that takes effect from 1 April 2028. It was announced at Autumn Budget 2025. HMRC’s measure page was published on 13 July 2026.
What you pay now is still ordinary vehicle tax. Check the status of a car on the car tax check, and the current electric-car rates on the electric car road tax guide.
The published rates
From 1 April 2028, GOV.UK states:
- 3 pence per mile for battery electric cars and hydrogen fuel-cell cars.
- 1.5 pence per mile for plug-in hybrid cars.
The rate is due to rise in line with CPI from 2029 to 2030. Petrol and diesel cars are not given a pence-per-mile rate in this measure. They carry on paying fuel duty on the fuel they buy. The charge sits alongside Vehicle Excise Duty. It does not replace the annual tax.
The government’s own example is 5,000 miles at 3 pence, which is £150 for the year, or £12.50 a month if paid monthly. A different mileage is a different bill. We are not publishing a calculator for a tax that has not started.
How the government says it will be paid
The keeper estimates the mileage for the year ahead, pays up front or spreads the cost, then gives the actual mileage at the end of the year so the account can be reconciled. Where the car already has an MOT, the intention is to use that mileage reading as a check. DVLA will administer it, through the same sort of channels as vehicle tax. Someone who expects to drive further can top up during the year at the rate then in force.
Who is in, and who is out at the start
The charge is for UK-registered electric and plug-in hybrid cars, and hydrogen fuel-cell cars at the electric rate. At introduction, vans, buses, coaches and HGVs are out of scope. So are cars that were converted from petrol or diesel to electric, and some special-purpose cars such as hearses and campervans. Those exclusions are in the GOV.UK consultation outcome. They are not a promise that the scope will never change.
What to do before 2028
Tax and MOT are unchanged by the announcement. Use the MOT and tax check for the current records, and read the HMRC note on Electric Vehicle Excise Duty before you budget for a mileage charge. Nothing on this page is added to a car’s tax bill until 1 April 2028.