Free Calculator Tool

Pay Per Mile Tax Calculator

Calculate how much the new eVED mileage tax will cost you from April 2028. Enter your annual mileage and electricity costs to see your estimated total running costs.

Calculate Your eVED Cost

See exactly how much you'll pay under the new pay-per-mile system

1. Select your vehicle type
2. Enter your annual mileage
1,000 miles8,000 miles30,000 miles
miles/year
Your Estimated eVED Costs (from April 2028)
eVED (Pay Per Mile)
£240
£20.00/month
VED
£195
£16.25/month
Total eVED + VED Cost
£435
Excludes electricity costs
That's approximately
£36/month
Cost Breakdown
Annual mileage8,000 miles
eVED rate3p per mile
eVED (8,000 × 3p)£240.00
VED (Road Tax)£195.00
Total Annual Cost£435.00
Note: These calculations are based on announced eVED rates and may change. Electricity costs vary by tariff and charging method. The government consultation is open until 18 March 2026.

Budget 2025 Update: From 1 April 2026, the Expensive Car Supplement threshold for zero-emission vehicles increases from £40,000 to £50,000. This applies retrospectively to vehicles registered from 1 April 2025. PHEVs and other vehicles remain at the £40,000 threshold.

What You Need to Know

Key facts about the pay-per-mile tax system

Starts April 2028
You have over 2 years to prepare. The government is currently consulting on the details.
No Trackers Required
Your privacy is protected. Mileage is checked at MOT – no GPS or tracking devices needed.
Pay With VED
eVED is paid alongside your road tax. Choose monthly, 6-monthly, or annual payments.
Half Fuel Duty Rate
EVs pay 3p per mile – exactly half the ~6p per mile petrol/diesel drivers pay in fuel duty.
Estimate Your Mileage
You'll estimate mileage at VED renewal, then reconcile at year end based on actual miles.
PHEVs Pay Less
Plug-in hybrids pay 1.5p per mile – half the EV rate – as they also pay fuel duty on petrol use.

Prepare for Pay Per Mile with AutoChain

Track Your Mileage

Start logging your mileage now to understand your driving patterns and budget accurately.

Forecast Your Costs

See projected annual costs based on your actual driving, not estimates.

Verified Service History

Garages upload records directly to your profile, protecting your vehicle's value.

All Costs in One Place

View mileage, maintenance, energy usage, and tax costs together.

Example: Average EV Driver

8,000 miles • 24p/kWh • 3.5 mi/kWh = 6.9p/mile
eVED (8,000 × 3p)£240
Electricity (8,000 × 6.9p)£549
VED (road tax)£200
Total per year£989

That's around £82 per month

Start Tracking Your Mileage Today

Get accurate mileage records before eVED arrives. AutoChain helps you track mileage, forecast costs, and maintain verified service history.

Frequently Asked Questions

Quick answers about the pay-per-mile tax

When does the pay per mile tax start?
The eVED (pay per mile tax) comes into force from 1 April 2028 for all electric and plug-in hybrid cars in the UK.
How much is the pay per mile tax?
Electric vehicles pay 3p per mile. Plug-in hybrids pay 1.5p per mile. This is half the ~6p per mile that petrol/diesel drivers pay in fuel duty.
Will I need a tracker in my car?
No. The government has ruled out trackers. Your mileage will be checked through odometer readings at your annual MOT test.
Is this in addition to road tax?
Yes. eVED is paid alongside your standard VED (road tax). You'll pay both from April 2028.

About Pay-Per-Mile Road Pricing in the UK

Why is the UK considering pay-per-mile taxation?

The UK government faces a significant revenue challenge as increasing EV adoption reduces fuel duty receipts. Fuel duty currently raises approximately £25 billion per year for the Treasury, making it one of the largest single sources of tax revenue. As petrol and diesel vehicles are replaced by EVs that pay no fuel duty, this revenue will decline substantially. Pay-per-mile taxation is the leading proposal for replacing this revenue in a way that applies equally to all vehicle types regardless of fuel source, while also providing the possibility of charging different rates by location, time of day, or road type — enabling more nuanced management of road congestion.

How would pay-per-mile tax be collected?

The government has not yet committed to a specific collection mechanism for pay-per-mile taxation, and this remains one of the most complex aspects of implementation. Proposed options include GPS-based tracking devices fitted to vehicles, odometer reporting at annual MOT or service, mobile phone GPS data used with consent, or a hybrid approach. Each mechanism has trade-offs between accuracy, privacy, cost, and enforcement difficulty. The privacy implications of continuous GPS tracking are politically and legally sensitive under UK GDPR, making an odometer-based reporting system a more privacy-respecting alternative, though one that is easier to circumvent.

Who would pay more and who would pay less under pay-per-mile?

Under a simple flat rate per-mile system, the winners and losers depend on current driving patterns and vehicle type. High-mileage drivers would pay more than under the current fuel duty system if they drive more than average miles at the proposed rate. Low-mileage drivers, or those who make short local trips, would pay less. Rural drivers who depend on their car for long distances to access services tend to drive more miles and would face disproportionate costs compared to urban dwellers with public transport alternatives. This distributional concern is one of the main political challenges for pay-per-mile implementation and has led to proposals for rural exemptions or discounted rates.

What is the eVED and how does it differ from VED?

VED (Vehicle Excise Duty, commonly called “road tax”) is a fixed annual charge based on vehicle type, emissions, and value. From April 2025, pure battery electric vehicles began paying VED for the first time, ending their previous exemption. eVED (electric Vehicle Excise Duty) specifically refers to the VED applicable to EVs under the new charging regime. The proposed pay-per-mile system would be a separate charge on top of VED rather than a replacement for it — at least in the initial proposals. This means EV owners from April 2028 could potentially face VED, the Expensive Car Supplement (if applicable), and a per-mile charge simultaneously.

How can I reduce my exposure to pay-per-mile costs?

The most direct way to reduce pay-per-mile tax liability is to drive fewer miles — through working from home where possible, combining trips efficiently, using public transport for some journeys, or cycling for short trips. For fleet operators, optimising routing and reducing unnecessary vehicle movements will directly reduce tax liability. Choosing a home or workplace location that reduces commuting distance is a longer-term factor. Pay-per-mile taxation, if implemented, would fundamentally change the economics of high-mileage driving and may accelerate the growth of car-sharing schemes, public transport investment, and remote working patterns already established since 2020.

Platform Logic

Why Clearer Infrastructure Matters to Both Drivers and Garages

Most problems in vehicle ownership are not caused by a lack of effort. They come from fragmented information. AutoChain is designed to close those gaps by giving both sides a clearer way to keep the history of the vehicle usable after the job is finished.

What better infrastructure fixes

A driver can care about the car and still lose track of service dates if reminders, invoices, MOT history, and approvals all live in different places. A garage can carry out good work and still struggle to retain customers if the record of that work is hard to retrieve later.

Better infrastructure matters because it makes the history usable again. It gives the owner and the workshop a stronger basis for the next decision instead of forcing both sides to reconstruct what happened from memory.

Why it matters in practice

Trust is built when the customer can see what happened, the garage can prove what was done, and the next decision starts with better context than the last one.

Trust improves

Customers can see what happened, garages can prove what was done, and the next decision starts with better context.

Economics improve

On-time reminders protect repeat business, cleaner records support price, and better visibility reduces wasted diagnosis.

Handovers improve

Approvals, complaints, resale discussions, and ownership transfers become easier to manage with a stronger evidence trail.

The market improves

Independent garages and informed drivers both benefit when the ownership story becomes easier to follow.

AutoChain combines driver tools, provider workflows, reminder systems, digital service history, and educational content because each part becomes more useful when it strengthens the same central outcome: a clearer, more credible, and more transferable record of what has happened to the vehicle and why it matters.