All the vehicles that owners will have to pay new tax on under government changes

The UK government is set to introduce a pay-per-mile tax for electric vehicles from April 2028.

This new system is meant to replace some of the money currently raised through fuel duty which has become less as more people are switching from petrol and diesel to electric.

Rather than using GPS tracking, which would raise privacy issues, drivers will provide an annual odometer (mileage) reading when renewing their vehicle tax.

It means the government will only record how many miles a vehicle has travelled, not where or when it was driven.

The scheme is expected to apply to fully electric cars and most plug-in hybrids, while electric vans will remain exempt.

How much the average EV driver will have to fork out

The UK government is set to introduce a pay-per-mile tax for electric vehicles from April 2028 (Getty Stock Images)

The proposed charge is 3p per mile for electric cars and 1.5p per mile for plug-in hybrids.

For the average UK driver, who covers roughly 7,000 miles a year, the new tax would be around £210 per year. The government estimates the scheme could raise around £1.2 billion each year.

For EV owners, the new tax means running an electric car will become more expensive, although the government says EVs should still be cheaper to run than petrol or diesel cars.

How will it work?

There will be a new pay-per-mile tax for all electric cars (Getty Stock Images)

Drivers will need to submit their annual mileage reading when renewing their vehicle tax.

Accurate mileage records will also become more important when buying or selling a used EV to ensure the correct owner pays for the miles driven.

Those who fail to provide accurate readings could face penalties.

‘It simply won’t work for drivers’

Vicky Edmonds, CEO of association EVA England, believes that the policy won’t work, as reported by Carwow.

“The government has made one welcome change for newer EVs, but the wider scheme remains too complex, risks leaving people out of pocket and fails to give drivers the confidence they need,” she said.

“At such a crucial point in the switch to electric, ministers should be making the system simpler, fairer and easier to understand, not pressing ahead with a policy whose key faults remain unresolved. This now piles pressure on the public charging review that must pave the way for affordable charging, or this transition simply won’t work for drivers.”

Battery Electric Vehicles (3p/mile)

(Getty Stock Images)

These include models such as:

Tesla

• Model 3
• Model Y
• Model S
• Model X

BMW

• i4
• i5
• i7
• iX
• iX1
• iX2

Audi

• Q4 e-tron
• Q6 e-tron
• Q8 e-tron
• e-tron GT
• A6 e-tron

Mercedes-Benz

• EQA
• EQB
• EQE
• EQS
• EQE SUV
• EQS SUV
• G 580 with EQ Technology

Volkswagen

• ID.3
• ID.4
• ID.5
• ID.7
• ID. Buzz

Kia

• EV3
• EV4
• EV5
• EV6
• EV9

Hyundai

• Kona Electric
• Ioniq 5
• Ioniq 6
• Inster

Nissan

• Leaf
• Ariya

MG

• MG4
• MG5
• MG S5 EV
• MG ZS EV
• Cyberster

BYD

• Dolphin
• Atto 3
• Seal
• Seal U
• Sealion 7
• Dolphin Surf

Volvo

• EX30
• EX40
• EC40
• EX90

Polestar

• Polestar 2
• Polestar 3
• Polestar 4

MINI

• Cooper Electric
• Aceman
• Countryman Electric

Renault

• Megane E-Tech Electric
• Scenic E-Tech Electric
• Renault 5 E-Tech

Ford

• Explorer EV
• Capri EV
• Mustang Mach-E
• Puma Gen-E

Vauxhall

• Corsa Electric
• Mokka Electric
• Astra Electric
• Frontera Electric
• Grandland Electric

Peugeot

• E-208
• E-2008
• E-308
• E-3008
• E-5008

Citroën

• ë-C3
• ë-C3 Aircross
• ë-C4
• ë-C4 X
• ë-Berlingo

Fiat

• 500e
• 600e
• Grande Panda Electric

Cupra

• Born
• Tavascan

Skoda

• Elroq
• Enyaq
• Enyaq Coupé

Porsche

• Taycan
• Macan Electric

Genesis

• GV60
• Electrified GV70
• Electrified G80

Honda

• e:Ny1

Smart

• #1
• #3
• #5

Others

• Lexus RZ
• Subaru Solterra
• Toyota bZ4X
• Leapmotor T03
• Leapmotor C10
• XPENG G6
• Lotus Eletre
• Lotus Emeya
• Rolls-Royce Spectre
• Maserati GranTurismo Folgore
• Maserati Grecale Folgore

Plug-in Hybrids (1.5p/mile)

Examples include:

• BMW 330e, 530e, X1 xDrive25e, X3 30e, XM
• Mercedes C300e, E300e, GLC 300e, GLE 350de
• Audi A3 TFSI e, A6 TFSI e, Q5 TFSI e, Q7 TFSI e
• Volkswagen Golf eHybrid, Passat eHybrid, Tiguan eHybrid, Touareg eHybrid
• Volvo XC60 Recharge, XC90 Recharge
• Kia Sportage PHEV, Niro PHEV, Sorento PHEV
• Hyundai Tucson Plug-in Hybrid, Santa Fe Plug-in Hybrid
• Ford Kuga Plug-in Hybrid
• Toyota Prius Plug-in, C-HR Plug-in Hybrid
• Peugeot 308 Plug-in Hybrid, 3008 Plug-in Hybrid, 408 Plug-in Hybrid
• Citroën C5 X Plug-in Hybrid
• MG HS Plug-in Hybrid
• Cupra Leon eHybrid, Formentor eHybrid, Terramar eHybrid
• Skoda Kodiaq iV, Superb iV
• Porsche Cayenne E-Hybrid, Panamera E-Hybrid
• Range Rover, Range Rover Sport, Defender, Discovery Sport and Evoque PHEV models
• Lexus NX 450h+, RX 450h+
• Jeep Compass 4xe, Wrangler 4xe
• Alfa Romeo Tonale Plug-in Hybrid