UK to introduce pay-per-mile tax for electric and plug-in hybrid vehicles from April 2028
By Eve
The UK Government will implement a distance-based tax for electric vehicle and plug-in hybrid owners starting April 2028, charging 3p or 1.5p per mile. An EV driver covering 10,000 miles annually will pay an additional £300 per year on top of existing vehicle tax. The levy aims to create parity with petrol and diesel drivers who pay distance-related charges through fuel duty, though industry observers warn it may dampen EV sales ahead of the 2030 ban on new internal combustion engine vehicles.
Why it matters
The new tax structure could affect total cost of ownership calculations for fleet operators and workplace charging schemes, potentially slowing EV adoption rates among commercial users who typically cover higher annual mileages. Charging point operators may need to adjust business models if demand growth softens as financial incentives for switching to electric vehicles continue to erode.
Source
- Original title
- “New pay-per-mile tax as certain car owners face £300 annual charge”
- Published
- 8 April 2026 (date approximate)
- Updated
- 22 September 2026
In this story
- Topic
- Policy & Market
- Place
- United Kingdom
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