New electric Vehicle Excise Duty (eVED)

Driver and Vehicle Standards Agency sent this bulletin at 26-11-2025 01:58 PM GMT

New electric Vehicle Excise Duty (eVED)

As part of the Autumn Budget set out today, the government have announced plans to introduce a new tax for EVs called eVED from April 2028, which will apply to electric and plug-in hybrid cars.

This is designed to replace the fuel duty revenues which will be lost as petrol and diesel vehicles are phased out over time.

eVED will be based on the miles driven by electric vehicle (EVs) and paid alongside existing Vehicle Excise Duty, with petrol and diesel vehicles continuing to be subject to fuel duty.

Other electric vehicle types (e.g. vans, HGVs) will not be in scope of the tax upon introduction.

The government has published a consultation on the new tax which is available on gov.uk and will be open until 18 March 2025.

Mileage checks at MOT stations

Under the plans, motorists will submit details of miles driven each year at the time their VED is due. A validation check will be then made against the mileage recorded at MOT garages.

For vehicles under 3 years old, the government intends for these cars to attend an additional mileage check at an accredited provider – MOT garages. This would be around their first and second anniversary, but the government is also seeking views through the consultation to confirm whether these additional checks should be required.

These checks would be funded by the government to cover the time taken by testers to carry them out.

Next steps

During and following the consultation, DVSA and DfT will work with HM Treasury and the MOT industry to make sure this work fits into the existing MOT service. We will update you through the Matters of Testing blog and other methods as this progresses, and will be talking to trade bodies in the coming days.

This will include how mileage is recorded at MOT (which could, for example, include using diagnostic equipment) and how MOT garages will be paid for any additional checks they undertake.

While the full details will be finalised over the coming years, this represents a strong vote of confidence in the MOT system and demonstrates the government's commitment to supporting the industry's future.