What's Changing
Electric car drivers already pay vehicle tax, so this isn't a first road tax for them. From the second tax payment, GOV.UK's rate tables show a single 12-month payment of £200 for electric cars, the same as petrol and diesel. The extra charge for cars with a list price over £50,000 already applies to electric cars too.
What's new is Electric Vehicle Excise Duty (eVED), a mileage-based charge added to the existing vehicle tax. Under the draft law, an electric car's tax would be its normal annual rate plus the eVED charge.
The proposed rates are:
- 3p a mile for battery electric and hydrogen cars
- 1.5p a mile for plug-in hybrids
The rates would rise with inflation (CPI) from 2029 to 2030. The government says it's replacing falling fuel duty, as electric car drivers don't currently pay an equivalent.
The government first published the draft on 13 July 2026. The 28 October update only changed the figures for how much money the tax raises.
Separately, on 28 October 2026, HM Treasury announced £100 million over two years from spring 2027 to cut charging costs at lower-powered public chargers near people's homes. See the plans to cut public charging costs.
When It Starts And Who It Affects
From 1 April 2028, if the law goes ahead. The draft says the changes would apply to vehicle tax taken out on or after that date. It's filed with the Finance Bill 2026-27 draft legislation, and the law itself is still to be introduced, so for now it's a proposal.
If it goes ahead, the policy paper says you'd usually pay eVED when you first renew your vehicle tax after April 2028. The government expects around 5.6 million vehicles to be affected in 2028 to 2029.
It covers cars only: battery electric, plug-in hybrid and hydrogen cars built mainly to carry passengers, with no more than eight seats plus the driver's. Special purpose vehicles are left out, and electric vans and motorbikes don't fit this definition.
Cars that are normally exempt from vehicle tax would still pay the eVED charge, with their annual rate treated as zero. Leasing and rental firms would get special arrangements, including estimating their mileage centrally.
When Would Eved Start?
The draft eVED law, from publication to the first payment.
- 13 July 2026
Draft Published
The government publishes the eVED policy paper and draft law.
- 28 October 2026
Figures Updated
Only the figures for how much the tax raises changed.
- 1 April 2028
Proposed Start
Applies to vehicle tax taken out on or after this date, if the law goes ahead.
- First renewal after April 2028
First Eved Payment
You'd usually pay eVED when you first renew your vehicle tax.
- 2029 to 2030
Rates Rise With Inflation
The 3p and 1.5p rates would go up in line with CPI.
From GOV.UK's eVED policy paper and draft legislation, checked 29 October 2026. Draft law, not yet in force.
What It Means For Your Car Insurance
Nothing official. eVED is a charge on top of your vehicle tax, and the government's eVED papers don't say anything about car insurance.
So don't assume it changes your cover or your price either way. If you have a question about what your insurer needs to know, ask your insurer directly.
If you're weighing up the running costs of an electric car, here's what electric car insurance covers and what to check before you quote.
What To Do Now
- Note the date. There's nothing to pay yet. eVED is draft law, and the proposed start is 1 April 2028.
- Know how it would work. At renewal, you'd give an odometer reading and estimate your mileage for the coming year. You could pay upfront or spread the cost, with a year-end reading to settle up. The government says it intends to use mileage data, where applicable, to make sure the mileage you give is consistent and up to date.
- Keep your odometer accurate. The draft makes it an offence to change an odometer record without a good reason. A car with a faulty odometer could also be banned from being driven on the road.
- Treat tax and insurance separately. eVED is a vehicle tax charge, and the official papers don't mention insurance. Here's whether you can tax a car without insurance.
Ask your insurer if you have questions about your cover. You can compare electric car insurance quotes when you're ready.
FAQs
Do Electric Cars Pay Road Tax Now?
Yes. Electric cars already pay vehicle tax, and from the second tax payment GOV.UK's rate tables show a single 12-month payment of £200, the same as petrol and diesel. The draft eVED law would add a per-mile charge on top from 1 April 2028.
Is eVED Law Yet?
No. It's filed with the Finance Bill 2026-27 draft legislation, and the law itself is still to be introduced. If it goes ahead, it applies to vehicle tax taken out on or after 1 April 2028.
Does eVED Affect My Car Insurance?
Not according to the official papers. eVED is a charge on top of vehicle tax, and the government's eVED papers don't mention car insurance. If you have a question about your cover, ask your insurer.
