Overview
- The government confirmed on Sunday that the Electric Vehicle Excise Duty (eVED) will begin in April 2028 charging 3p per mile for battery EVs and 1.5p per mile for plug‑in hybrids.
- Under the scheme motorists will estimate annual mileage, pay an upfront charge or spread payments, submit actual mileage at year end for reconciliation, and usually have mileage checked during MOTs.
- The DVLA says its legacy vehicle systems cannot support automatic refunds at launch so any overpaid mileage credit will normally be carried forward and a limited online refund route will be available for some cases.
- Industry groups warned the untested administrative model risks extra costs for owners, odometer disputes, inconsistent MOT diagnostics and could slow EV uptake or create deliverability problems for the next Treasury team.
- The government has exempted extra checks for cars under three years and offered flexibilities for fleets and lease firms, and it says further rules on refunds for change of keeper and other lifecycle events will be published later in 2026.