The UK government’s low-tech approach to introducing a pay-per-mile tax for electric vehicles (EVs) has come under fire from fleet experts, who warn that it could pose an “unreasonable” administrative burden for operators.
Announced as part of the 2025 Autumn Budget, electric vehicle excise duty (eVED) will demand an additional 3p per mile from electric car drivers and 1.5p per mile from plug-in hybrid drivers from 1 April 2028.
The plan hasn’t been finalised yet. To avoid mandating in-car trackers, the Treasury has proposed that drivers will estimate their next 12 months’ usage in advance, pay up front while renewing their tax, then reclaim any excess after an end-of-year mileage check. It has launched a public consultation inviting comments until 18 March 2026.
The Association of Fleet Professionals (AFP) is collecting member feedback for the consultation and urging decision makers to engage, noting that previous conversations with the government had delivered useful policy reforms.
AFP chairman Paul Hollick said that while members recognise the need to raise revenue, the need to take cars less than three years old into often overbooked MOT testing stations for mileage checks risks will be disruptive for fleets.
“It’s just something of a hotch-potch," he said. "It’s not really pay-on-use and it’s not really retrospective charging. We’re struggling to see any advantages at all in this approach.
“The obvious alternative is a technological solution, but journey tracking would inevitably and properly raise questions over privacy and civil liberties. Also, any form of hardware or software used to collect data could add significant costs for fleets and private motorists.”
Leasing companies are also paying close attention, because the proposal places responsibility for collecting mileage data on them as the registered keepers of leased vehicles.
Matt Walters, head of consultancy services and customer value at Ayvens, the UK’s largest leasing firm, said eVED could be added onto the monthly rentals for new contracts but the lack of "grandfather rules" for older vehicles will leave some customers with unexpected additional costs.
“From April 2028, we would need to obtain an accurate mileage for every single EV and PHEV already on fleet on the day the rules take effect, forecast the mileage for the next 12 months and then pass on a retrospective charge for that entire period. None of that was priced into the original contracts,” he told Autocar.
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