| Anyone know how the mileage road tax charge will work on EV's? 13:25 - Nov 26 with 2195 views | MrPotatoHead |
3p per mile seems a lot. I do 20k annually in mine, I'll be on the hook for £600! |  | | |  |
| Anyone know how the mileage road tax charge will work on EV's? on 13:28 - Nov 26 with 1651 views | BloomBlue |
Not coming in until 2028, so I guess more details will arrive.
More of a question for me is, if I drive my car in France do those miles count towards UK per mile charge? |  | | |
| Anyone know how the mileage road tax charge will work on EV's? on 13:31 - Nov 26 with 1640 views | SuperKieranMcKenna |
Would imagine it’s (mileage) all saved on GPS on your car.
Fuel duty is frozen though - should have bought a V8. |  | | |
| Anyone know how the mileage road tax charge will work on EV's? on 13:32 - Nov 26 with 1619 views | MrPotatoHead |
| Anyone know how the mileage road tax charge will work on EV's? on 13:31 - Nov 26 by SuperKieranMcKenna |
Would imagine it’s (mileage) all saved on GPS on your car.
Fuel duty is frozen though - should have bought a V8. |
A win for fossil fuel. | | | |
| Anyone know how the mileage road tax charge will work on EV's? on 13:43 - Nov 26 with 1568 views | soupytwist |
I've no idea how HMRC will know how many miles you've driven in any given time period.
However, the reason for the per mile charge for EVs is that EV drivers don't pay the admittedly crude per mile charge that already exists in the form of fuel duty. The more miles you drive, the more fuel duty you pay, with other factors at play too. And as more people drive EVs the reduction in fuel duty revenue will become problematic for government coffers very quickly.
So, you drive 20,000 miles per year - that's 32187 km. If you had a petrol or diesel powered car that did 40mpg (7 litres per 100 km) average you'd need to buy 2,253 litres of fuel to cover that distance.
UK fuel duty is currently 52.95p per litre. So 2,253 x £0.5295 is £1,193.01. So £600 isn't a bad deal.
Assuming you charge a fair bit at home, you're still quids in given the cost of domestic electricity, which is also subject to a lower rate of VAT than petrol/diesel (5% compared to the normal 20%).
Caveat - I'm rubbish at maths but I think this stacks up. [Post edited 26 Nov 13:47]
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| Anyone know how the mileage road tax charge will work on EV's? on 13:54 - Nov 26 with 1490 views | baxterbasics |
At least my EV will be paid off by the time this kicks in so I can switch back to a dirty diesel.
£650 extra per year just so I can get to work and back.
Am curious about how they intend to track and enforce it though. |  |
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| Anyone know how the mileage road tax charge will work on EV's? on 13:55 - Nov 26 with 1488 views | Kievthegreat |
Would make more sense to bring balance if they weren't at the same time freezing fuel duty which will cost them more than they raise through the tax. |  | | |
| Anyone know how the mileage road tax charge will work on EV's? on 13:59 - Nov 26 with 1447 views | soupytwist |
| Anyone know how the mileage road tax charge will work on EV's? on 13:55 - Nov 26 by Kievthegreat |
Would make more sense to bring balance if they weren't at the same time freezing fuel duty which will cost them more than they raise through the tax. |
As my post above demonstrates, it's more about plugging the financial hole that increased EV use is causing than raising more money from drivers. How popular do you think it would be if the chancellor put fuel duty up for petrol and diesel users to compensate for the fact that EV drivers don't pay it (or the same amount of VAT on their fuel in the majority of cases)? | | | |
| Anyone know how the mileage road tax charge will work on EV's? on 14:02 - Nov 26 with 1409 views | MrPotatoHead |
| Anyone know how the mileage road tax charge will work on EV's? on 13:43 - Nov 26 by soupytwist |
I've no idea how HMRC will know how many miles you've driven in any given time period.
However, the reason for the per mile charge for EVs is that EV drivers don't pay the admittedly crude per mile charge that already exists in the form of fuel duty. The more miles you drive, the more fuel duty you pay, with other factors at play too. And as more people drive EVs the reduction in fuel duty revenue will become problematic for government coffers very quickly.
So, you drive 20,000 miles per year - that's 32187 km. If you had a petrol or diesel powered car that did 40mpg (7 litres per 100 km) average you'd need to buy 2,253 litres of fuel to cover that distance.
UK fuel duty is currently 52.95p per litre. So 2,253 x £0.5295 is £1,193.01. So £600 isn't a bad deal.
Assuming you charge a fair bit at home, you're still quids in given the cost of domestic electricity, which is also subject to a lower rate of VAT than petrol/diesel (5% compared to the normal 20%).
Caveat - I'm rubbish at maths but I think this stacks up. [Post edited 26 Nov 13:47]
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Your maths does stack up but I also pay more to lease my EV vs the alternative, so that's another aspect to it.
My lease ends in 2027 so guess I'll redo the maths nearer the time. They'll probably back track on it by then. | | | |
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| Anyone know how the mileage road tax charge will work on EV's? on 14:05 - Nov 26 with 1378 views | Swansea_Blue |
| Anyone know how the mileage road tax charge will work on EV's? on 13:31 - Nov 26 by SuperKieranMcKenna |
Would imagine it’s (mileage) all saved on GPS on your car.
Fuel duty is frozen though - should have bought a V8. |
I’ve just placed an order
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| Anyone know how the mileage road tax charge will work on EV's? on 14:06 - Nov 26 with 1371 views | soupytwist |
| Anyone know how the mileage road tax charge will work on EV's? on 14:02 - Nov 26 by MrPotatoHead |
Your maths does stack up but I also pay more to lease my EV vs the alternative, so that's another aspect to it.
My lease ends in 2027 so guess I'll redo the maths nearer the time. They'll probably back track on it by then. |
OK, you pay more to lease the EV. Is that due to any tax implications?
If you do so via a company the BIK levels probably mean the tax liability is significantly reduced compared to an equivalent petrol/diesel vehicle. | | | |
| Anyone know how the mileage road tax charge will work on EV's? on 14:09 - Nov 26 with 1341 views | MrPotatoHead |
| Anyone know how the mileage road tax charge will work on EV's? on 14:06 - Nov 26 by soupytwist |
OK, you pay more to lease the EV. Is that due to any tax implications?
If you do so via a company the BIK levels probably mean the tax liability is significantly reduced compared to an equivalent petrol/diesel vehicle. |
No I fund it privately, its purely (I presume) due to the RRP. The petrol model I looked at was cheaper to lease on a like-for-like basis vs. the EV, but the retail price was £5k less if buying, so presumably its just a consequence of that? | | | |
| Anyone know how the mileage road tax charge will work on EV's? on 14:13 - Nov 26 with 1317 views | Kievthegreat |
| Anyone know how the mileage road tax charge will work on EV's? on 13:59 - Nov 26 by soupytwist |
As my post above demonstrates, it's more about plugging the financial hole that increased EV use is causing than raising more money from drivers. How popular do you think it would be if the chancellor put fuel duty up for petrol and diesel users to compensate for the fact that EV drivers don't pay it (or the same amount of VAT on their fuel in the majority of cases)? |
But that's my point. They've not really plugged any gap. They are bringing in money from EV drivers (which makes sense to balance things long term as fuel duty will continue to shrink). However that is more than offset by the cost (or loss of tax) of freezing fuel duty. If they were interested in plugging the gaps, then surely they keep both?
It also sets a weird precedent that the green option gets tax rises while fossil fuel gets an effective cut. Odd messaging from a government that advertised itself as greener than previous ones. | | | |
| Anyone know how the mileage road tax charge will work on EV's? on 14:14 - Nov 26 with 1311 views | Pinewoodblue |
| Anyone know how the mileage road tax charge will work on EV's? on 13:59 - Nov 26 by soupytwist |
As my post above demonstrates, it's more about plugging the financial hole that increased EV use is causing than raising more money from drivers. How popular do you think it would be if the chancellor put fuel duty up for petrol and diesel users to compensate for the fact that EV drivers don't pay it (or the same amount of VAT on their fuel in the majority of cases)? |
It is only frozen until September. |  |
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| Anyone know how the mileage road tax charge will work on EV's? on 14:17 - Nov 26 with 1296 views | soupytwist |
| Anyone know how the mileage road tax charge will work on EV's? on 14:09 - Nov 26 by MrPotatoHead |
No I fund it privately, its purely (I presume) due to the RRP. The petrol model I looked at was cheaper to lease on a like-for-like basis vs. the EV, but the retail price was £5k less if buying, so presumably its just a consequence of that? |
Not necessarily, it'll probably be more to do with expected value at the end of the lease period, which can be a bit volatile for electric cars. I reckon that your relatively high mileage requirements might have had something to do with the increased cost because, rightly or wrongly, an 80k mile (assuming 4 year lease) electric car is perceived differently by the market than an 80k petrol car.
Some very quick research reveals that if you lease a Ford Puma Sound Edition from Leasing Options (selected as that model has both battery and petrol powered models) with 4 years personal lease, £3,659.28 initial payment and 5,000 miles per annum it's £304.94 for the petrol and £286.84 for the electric.
Obviously not exactly analogous to your case (and TBH in my view you'd be insane to pay that amount to effectively rent a car for 4 years to do a total of 20,000 miles) but shows that electrics aren't necessarily more expensive to lease than their petrol equivalents. [Post edited 26 Nov 14:25]
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| Anyone know how the mileage road tax charge will work on EV's? on 14:17 - Nov 26 with 1291 views | Swansea_Blue |
I’ve only seen the headlines, but it all sounds a little bitty. A bit of tinkering here, a tweak there and all while making tax rules possibly more complicated. It can’t be an efficient way to try to raise more money. But maybe it’s more palatable to the public than sticking 3 p in the pound on VAT or income tax (although the income tax threshold freeze achieves the same). | |
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| Anyone know how the mileage road tax charge will work on EV's? on 14:20 - Nov 26 with 1273 views | soupytwist |
| Anyone know how the mileage road tax charge will work on EV's? on 14:13 - Nov 26 by Kievthegreat |
But that's my point. They've not really plugged any gap. They are bringing in money from EV drivers (which makes sense to balance things long term as fuel duty will continue to shrink). However that is more than offset by the cost (or loss of tax) of freezing fuel duty. If they were interested in plugging the gaps, then surely they keep both?
It also sets a weird precedent that the green option gets tax rises while fossil fuel gets an effective cut. Odd messaging from a government that advertised itself as greener than previous ones. |
They're freezing fuel duty because they don't want to be the first government since 2011 to put it up.
And they're not yet serious about plugging the gap in revenue in my opinion. If they were the per mile charge would be more than they've decided on. 3p per mile is the cheapest it's ever going to be. | | | |
| Anyone know how the mileage road tax charge will work on EV's? on 14:20 - Nov 26 with 1271 views | Kievthegreat |
| Anyone know how the mileage road tax charge will work on EV's? on 14:09 - Nov 26 by MrPotatoHead |
No I fund it privately, its purely (I presume) due to the RRP. The petrol model I looked at was cheaper to lease on a like-for-like basis vs. the EV, but the retail price was £5k less if buying, so presumably its just a consequence of that? |
An equivalent EV to ICE will always cost more with current technology. The Battery is the biggest price driver. The battery being heavy also flows into everything needing to be bulked up, i.e stronger body, chunkier suspension, bigger wheels, etc...
That price, plus depreciation tending to be higher on EVs ATM will be what drives up the lease payments. The other thing will be if the list price (not what was actually paid) goes over £40k for the EV vs the ICE. Going over £40k incurs a payment of £425 VEDs per year. | | | |
| Anyone know how the mileage road tax charge will work on EV's? on 14:28 - Nov 26 with 1224 views | MrPotatoHead |
| Anyone know how the mileage road tax charge will work on EV's? on 14:20 - Nov 26 by Kievthegreat |
An equivalent EV to ICE will always cost more with current technology. The Battery is the biggest price driver. The battery being heavy also flows into everything needing to be bulked up, i.e stronger body, chunkier suspension, bigger wheels, etc...
That price, plus depreciation tending to be higher on EVs ATM will be what drives up the lease payments. The other thing will be if the list price (not what was actually paid) goes over £40k for the EV vs the ICE. Going over £40k incurs a payment of £425 VEDs per year. |
Mine was £31k to buy, the petrol was £26k IIRC.
I quickly opted to lease, and then there was a monthly differential of £60 from memory. | | | |
| Anyone know how the mileage road tax charge will work on EV's? on 14:36 - Nov 26 with 1157 views | MrPotatoHead |
| Anyone know how the mileage road tax charge will work on EV's? on 14:17 - Nov 26 by soupytwist |
Not necessarily, it'll probably be more to do with expected value at the end of the lease period, which can be a bit volatile for electric cars. I reckon that your relatively high mileage requirements might have had something to do with the increased cost because, rightly or wrongly, an 80k mile (assuming 4 year lease) electric car is perceived differently by the market than an 80k petrol car.
Some very quick research reveals that if you lease a Ford Puma Sound Edition from Leasing Options (selected as that model has both battery and petrol powered models) with 4 years personal lease, £3,659.28 initial payment and 5,000 miles per annum it's £304.94 for the petrol and £286.84 for the electric.
Obviously not exactly analogous to your case (and TBH in my view you'd be insane to pay that amount to effectively rent a car for 4 years to do a total of 20,000 miles) but shows that electrics aren't necessarily more expensive to lease than their petrol equivalents. [Post edited 26 Nov 14:25]
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Yeah that's wild, its about 91p per mile. Mine shakes out about 23p if you think of it like that.
Its the first time I've ever leased a car, I've normally had older diesel ones. I just needed something reliable, it was brand new, no MOT, cheap to run because its EV and under warranty etc so 'stress free' motoring. I'd also found with my last motor a garage only needs to look at it and have it in for a day and you're rarely getting a bill for anything under £500.
The alternative was to buy an older banger but I would only save £100 - £150 a month (after fuel costs), risk expensive repairs / breakdowns and not have a new car to drive so it stacked up for me. | | | |
| Anyone know how the mileage road tax charge will work on EV's? on 14:40 - Nov 26 with 1143 views | mellowblue |
EVs account for approx 5% of vehicles on the road. A nice sample size to trial money per mile motoring. Once proven to work, isn't logical to assume it will be extended to all vehicles and then do away with the traditional road tax? Maybe not fair on rural drivers with their higher commutes and school runs etc. Seems a good deal of effort for currently such a small sector. | | | |
| Anyone know how the mileage road tax charge will work on EV's? on 14:41 - Nov 26 with 1141 views | andytown |
| Anyone know how the mileage road tax charge will work on EV's? on 13:54 - Nov 26 by baxterbasics |
At least my EV will be paid off by the time this kicks in so I can switch back to a dirty diesel.
£650 extra per year just so I can get to work and back.
Am curious about how they intend to track and enforce it though. |
Mentioned on the radio that it would be payable when VED is renewed annually.
No idea how they’d get the mileage though. Make it compulsory for EV drivers to have one of those black box things that insurance companies use for pay per mile insurance? | | | |
| Anyone know how the mileage road tax charge will work on EV's? on 14:47 - Nov 26 with 1098 views | Kievthegreat |
| Anyone know how the mileage road tax charge will work on EV's? on 14:20 - Nov 26 by soupytwist |
They're freezing fuel duty because they don't want to be the first government since 2011 to put it up.
And they're not yet serious about plugging the gap in revenue in my opinion. If they were the per mile charge would be more than they've decided on. 3p per mile is the cheapest it's ever going to be. |
Instead they became the first government to put per-mile charging in place. I seem to recall outrage when suggested back in the Tony Blair days. I wouldn't be surprised to see it rolled out to all cars longer term though.
This levy also removes incentives. In fuel duty, the unit of consumption as petrol/diesel means you tax the biggest polluters most (a good thing). The current rates are just a flat rates. Someone in a 3 tonne Range Rover PHEV pays half the rate per miles of someone in a little hatchback. If the main use of that PHEV is just commuting, they could wind up playing less.
50mile round trip commute, 5 days a week, 46 weeks a year on electric only, they pay £172.50, but any EV pays £345.
It's an optimistic sum and ignores all the longer trips that will undoubtedly occur, but it is a weird incentive.
IMO, if they care about paying for roads, they should penalise those who use the roads most, which is not just miles, but weight. Smaller and lighter vehicles should be encouraged as they produce less stress and wear. Add in some incentives in the bands so that petrol and Diesel get taxed more heavily and that FCEVs/EVs/PHEVs/etc... get taxed less, but move the impetus onto weight. | | | |
| Anyone know how the mileage road tax charge will work on EV's? on 14:59 - Nov 26 with 1044 views | mellowblue |
| Anyone know how the mileage road tax charge will work on EV's? on 14:41 - Nov 26 by andytown |
Mentioned on the radio that it would be payable when VED is renewed annually.
No idea how they’d get the mileage though. Make it compulsory for EV drivers to have one of those black box things that insurance companies use for pay per mile insurance? |
Once fully rolled out if it ever is (I speculated earlier) it seems like a ploy to let big brother keep an eye on our whereabouts and our driving. | | | |
| Anyone know how the mileage road tax charge will work on EV's? on 15:03 - Nov 26 with 1018 views | soupytwist |
| Anyone know how the mileage road tax charge will work on EV's? on 14:47 - Nov 26 by Kievthegreat |
Instead they became the first government to put per-mile charging in place. I seem to recall outrage when suggested back in the Tony Blair days. I wouldn't be surprised to see it rolled out to all cars longer term though.
This levy also removes incentives. In fuel duty, the unit of consumption as petrol/diesel means you tax the biggest polluters most (a good thing). The current rates are just a flat rates. Someone in a 3 tonne Range Rover PHEV pays half the rate per miles of someone in a little hatchback. If the main use of that PHEV is just commuting, they could wind up playing less.
50mile round trip commute, 5 days a week, 46 weeks a year on electric only, they pay £172.50, but any EV pays £345.
It's an optimistic sum and ignores all the longer trips that will undoubtedly occur, but it is a weird incentive.
IMO, if they care about paying for roads, they should penalise those who use the roads most, which is not just miles, but weight. Smaller and lighter vehicles should be encouraged as they produce less stress and wear. Add in some incentives in the bands so that petrol and Diesel get taxed more heavily and that FCEVs/EVs/PHEVs/etc... get taxed less, but move the impetus onto weight. |
Cardiff City council is blazing a bit of a trail as far as penalising heavy vehicles is concerned - presumably they know that EV batteries aren't light.
https://www.theguardian.com/uk-news/2025/oct/16/cardiff-becomes-first-uk-council | | | |
| Anyone know how the mileage road tax charge will work on EV's? on 15:03 - Nov 26 with 1015 views | NedPlimpton |
| Anyone know how the mileage road tax charge will work on EV's? on 14:59 - Nov 26 by mellowblue |
Once fully rolled out if it ever is (I speculated earlier) it seems like a ploy to let big brother keep an eye on our whereabouts and our driving. |
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