April 27, 2026 in London, United Kingdom — The UK government has confirmed that a pay-per-mile road tax for electric vehicles will begin in 2028, marking the most significant change to vehicle taxation since the introduction of road tax itself. The new system, called eVED (electronic Vehicle Exercise Duty), will replace the flat annual VED rate for EVs with a mileage-based charge of approximately 3 pence per mile.
What Is eVED?
eVED stands for electronic Vehicle Exercise Duty — a distance-based road pricing system specifically for electric vehicles. Rather than paying a fixed annual amount regardless of how much you drive, eVED charges you proportionally to your actual road usage.
The rationale is straightforward: as more drivers switch to EVs, the Treasury collects less fuel duty (which currently funds most road maintenance). The eVED system ensures that EV drivers contribute fairly to road upkeep based on how much they use the roads.
The Proposed eVED Rate
The current proposed eVED rate is 3 pence per mile (3p/mile). Here is how this translates to annual costs:
| Annual Mileage | eVED Cost (3p/mile) | Current Flat VED | Difference |
|---|---|---|---|
| 3,000 miles | £90 | £200 | -£110 (cheaper) |
| 5,000 miles | £150 | £200 | -£50 (cheaper) |
| 6,667 miles (break-even) | £200 | £200 | £0 (break-even) |
| 8,000 miles | £240 | £200 | +£40 (more expensive) |
| 10,000 miles | £300 | £200 | +£100 (more expensive) |
| 12,000 miles (UK average) | £360 | £200 | +£160 (more expensive) |
| 15,000 miles | £450 | £200 | +£250 (more expensive) |
| 20,000 miles | £600 | £200 | +£400 (more expensive) |
eVED Implementation Timeline
| Date | Milestone |
|---|---|
| January 2027 | All new EVs must have DVLA-compliant telematics hardware |
| April 2027 | DVLA opens eVED registration system for new EV owners |
| January 2028 | eVED mandatory for all new EV registrations from this date |
| April 2028 | First eVED billing cycle begins for new registrations |
| April 2029 | Phased rollout for existing EV fleet begins |
| 2032 | Full eVED coverage for all registered EVs |
The Tracking Technology: Privacy Concerns
The eVED system will use GPS-based telematics to track vehicle mileage. This has raised significant privacy concerns:
- Data collection: The system records where and when you drive, not just how many miles.
- Data sharing: The DVLA has promised that location data will not be shared with third parties or used for speed enforcement without a court order.
- Privacy framework: The full data protection framework is still being developed by the Information Commissioner's Office (ICO).
Privacy advocates argue that GPS tracking sets a dangerous precedent and could lead to surveillance of innocent drivers. The AA and RAC have both called for clear privacy guarantees before the system launches.
How eVED Compares to Fuel Duty
For comparison, the average petrol car paying 55p per litre in fuel duty contributes approximately 8p per mile in road funding. At 3p per mile, the eVED rate for EVs is actually lower than the road funding contribution from equivalent petrol cars — at least for average-mileage drivers.
International Comparisons
| Country/Region | System | Rate | Status |
|---|---|---|---|
| UK (proposed) | eVED pay-per-mile | ~3p/mile | 2028 launch |
| New Zealand | Road User Charges (RUC) | ~1.5p/km | In force since 2022 |
| Oregon, USA | OReGO mileage tax | 1.7 cents/mile | Voluntary pilot |
| Washington, USA | Opt-out mileage fee | 2.4 cents/mile | Voluntary pilot |
| Netherlands | Motorrijtuigenbelasting | Variable by emissions | In force |
Should You Buy an EV Before 2028?
Arguments For Buying Before 2028
- Transitional provisions may benefit early EV adopters
- EV prices may rise as manufacturers pass on telematics costs
- Current 2% BiK rate is confirmed until at least 2028
- Low-mileage drivers (< 6,667/year) will pay less under eVED than the £200 flat rate
Arguments For Waiting
- Battery technology is improving rapidly; 2028-2029 EVs will have longer range
- More model choices will be available by 2028
- The final eVED rate will be known by 2027, allowing accurate calculations
- Charging infrastructure will be more mature
The Long-Term Future: All-Vehicle Road Pricing
Transport for London and several regional authorities have advocated for a national road pricing scheme that would eventually replace fuel duty for all vehicles — petrol, diesel, hybrid, and electric. If successful, eVED for EVs in 2028 could be the first step toward a broader system by 2035, when new petrol and diesel car sales end.
Conclusion
The eVED pay-per-mile system represents a fundamental shift in how road tax is calculated for electric vehicles. For the average UK driver covering 12,000 miles per year, eVED will cost £360 annually — £160 more than the current £200 flat rate. However, for low-mileage drivers, eVED offers savings. Use our Car Tax Calculator to run the numbers and decide whether now is the right time to buy an EV.
Disclaimer: The 3p/mile rate is based on current government proposals. Final rate to be confirmed in the 2027 Autumn Budget.
Official Resources: GOV.UK Vehicle Tax | DfT Road Investment