UK introduces eVED pay per mile tax for electric vehicles from 2026
By Eve
The UK Government confirmed in the 2026 Budget it will implement eVED, a pay per mile tax on electric vehicles first proposed in 2025. Battery electric vehicles will be charged 3p per mile, while plug in hybrids and fuel cell vehicles will pay 1.5p per mile. The Office for Budget Responsibility estimates a BEV driver covering 8,500 miles annually will pay an additional £255 per year.
Why it matters
The new tax structure directly affects total cost of ownership calculations for fleet operators and workplace charging programmes, potentially influencing procurement decisions and charging infrastructure investment strategies. CPOs may need to adjust pricing models as the tax narrows the running cost advantage of EVs over combustion vehicles.
Source
- Original title
- “eVED explained: How new tax rules will affect every EV driver”
- Published
- 29 October 2026
- Updated
- 30 October 2026
In this story
- Topic
- Policy & Market
- Place
- United Kingdom
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