Overview
- The government confirmed on Sunday, July 19, 2026, that the Electric Vehicle Excise Duty (eVED) will start in April 2028 charging 3p per mile for full EVs and 1.5p per mile for plug‑in hybrids.
- Under the scheme motorists will estimate annual mileage at their VED renewal, pay an upfront charge based on that estimate, and submit an odometer or MOT reading at year end to reconcile actual use.
- The DVLA says its legacy vehicle systems cannot support automatic refunds when the scheme launches, so any overpaid mileage credit will normally be carried forward and refunds will be allowed only in limited, specified cases.
- Industry groups warned the refund limitation and reliance on odometer/MOT data create risks such as tampered or inconsistent mileage records and extra administrative burden for dealers, fleets and garages.
- The Treasury frames eVED as a response to falling fuel duty receipts and the government plans further technical work and guidance before April 2028 to address DVLA system changes, refund rules and fleet arrangements.