LONDON / RankWire.AI / – The UK government has moved its electric vehicle pay-per-mile tax closer to implementation by publishing its consultation response and draft legislation. HM Treasury released the documents on July 13 and kept April 1, 2028, as the launch date. The measure, called Electric Vehicle Excise Duty, will add a mileage charge to the annual tax already paid on affected cars. A technical consultation on the draft clauses closes on Sept. 7, 2026.

Battery-electric and hydrogen fuel cell cars will pay 3 pence for each mile traveled. Plug-in hybrid cars will pay 1.5 pence per mile because their petrol or diesel use also incurs fuel duty. The rates will rise with consumer price inflation from the 2029-30 tax year. At the initial rate, 8,000 miles would cost an electric car driver £240 a year. Ten thousand miles would cost £300. Drivers will pay this amount in addition to standard Vehicle Excise Duty.
Motorists will submit an odometer reading when they renew their vehicle tax. They will also estimate mileage for the next tax period, usually one year. Drivers may pay the estimated bill upfront or spread it across the year. The Driver and Vehicle Licensing Agency will compare later readings with the estimate and calculate any balance. Existing MOT records will support verification for cars that already undergo annual testing. The process will use the existing vehicle tax system.
Mileage reporting avoids extra inspections
The government has abandoned its proposal for separate mileage checks on cars that have not reached MOT age. Owners of those vehicles will report their mileage and provide an annual estimate instead. The first MOT will produce a verified reading for comparison with earlier submissions. Most cars in Great Britain enter MOT testing after three years, while Northern Ireland uses four years. Officials may still order a check when they reasonably suspect fraud or noncompliance.
The scheme will not use mandatory tracking devices or record individual journeys. Mileage on roads outside the UK will count because the charge follows total odometer distance. Battery-electric cars, plug-in hybrids and hydrogen fuel cell cars fall within the initial scheme. Electric vans, buses, coaches and heavy goods vehicles remain outside its scope at launch. Drivers may later choose an optional system that uses mileage data from connected cars.
Consultation response sets implementation details
The consultation ran from Nov. 26, 2025, through March 18, 2026, and attracted 5,133 responses. Individuals submitted 92% of them, while businesses and public bodies also took part. Respondents raised issues involving administration, mileage checks, payment flexibility, fleet management and odometer fraud. The revised design allows fleets and leasing companies to use estimated readings and bulk licensing. It also provides more flexible payment arrangements for companies managing many vehicles.
Government estimates show that the tax will cover about 5.6 million vehicles in the 2028-29 financial year. The Office for Budget Responsibility certified revenue estimates of £1.1 billion for that year. Receipts rise to £1.435 billion in 2029-30 and £1.865 billion in 2030-31. Implementation work now covers legislation, payment systems, mileage verification, refunds, penalties, appeals and dispute procedures. Motorists will begin paying when they first renew their vehicle tax after April 1, 2028.
