The Treasury says electric car drivers could use vehicle connectivity to report GPS-tracked mileage under a planned per-mile tax from April 2028. The option would replace manual mileage estimates, rather than make tracking compulsory.
The proposed electric vehicle excise duty would charge electric car owners 3p per mile and plug-in hybrid drivers 1.5p per mile, on top of the £200 annual standard vehicle excise duty. Drivers would otherwise pay based on predicted yearly mileage, checked against MOT records.
In its response to a public consultation that drew concerns from more than 5,000 stakeholders, the Treasury reaffirmed the plan and said the per-mile rates would rise each year with Consumer Prices Index inflation from 2029-30. It says the charge is intended to reflect the fuel duty paid by petrol and diesel drivers.
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