How the New EV Mileage Tax Affects Your MOT

At a Glance

The new EV mileage tax, set to take effect in 2028, will charge electric and hybrid drivers based on verified annual mileage recorded during MOT tests. Mileage from both within the UK and abroad will count toward the total mileage that the tax is based on. Accurate odometer readings, supported by regular servicing, will be essential to ensure correct taxation and avoid any discrepancies.

What Is the New EV Mileage Tax?

Hybrid and electric vehicle drivers are set to see changes in how road taxation is calculated. The planned EV mileage tax, announced at the UK Autumn budget, will replace the current system of flat-rate charges for zero-emission cars by 2028.

In essence, you will be taxed based on the annual mileage, rather than paying a fixed amount. The goal with this approach is to create a fairer usage-based model as many drivers move away from petrol and diesel vehicles.

While the full impact of this tax plan is yet to be understood, the government has confirmed that the system will rely on verified annual mileage (via MOT tests) rather than estimates or self-reported figures.

In this blog, we’ll cover how the new mileage tax will affect how you approach vehicle checks.

How Accurate Will the Mileage Tracking Be?

The new EV mileage tax will rely on data collected during MOTs to calculate annual mileage. This means your vehicle’s odometer readings will play a central role in determining your tax, so accuracy is key.

As some electric and hybrid vehicle drivers travel abroad, and tax is calculated on odometer readings, it is important to take note of the fact that mileage from both in and out of the UK will be taken into account.

If a UK driver accrues 3,000 miles on their odometer in France, those 3,000 miles will still be included in the calculation for their tax for that year.

It is also worth noting that authorities are aware that this mileage-based approach could encourage some people to tamper with odometers. The government is exploring measures to reduce this risk and ensure accurate reporting.

To stay on top of accurate mileage recording and avoid any discrepancies, it’s important to keep up with your regular EV service schedule.

The Impact on Your MOT

With the new EV mileage tax, MOT checks carry extra weight for electric and hybrid vehicles. Accurate odometer readings will be crucial, so keeping up to date with car maintenance to ensure accurate readings is important to prevent inconsistencies that could impact your tax calculations.

Sticking to your EV service schedule ensures that your odometer and other key systems, including brakes, tyres, lights, and turbo, are functioning correctly. This reduces the risk of errors in mileage reporting that could impact your tax liability.

Regular servicing also identifies any electric car issues early, keeping your vehicle compliant and ready for MOT inspections.

FAQs

Still feeling confused about how the new EV mileage tax will affect you? Here are answers to some common questions to help you gain a better understanding of the upcoming changes:

Will I have to pay the tax before 2028?

No, the tax is scheduled to come into effect in 2028. Until then, zero-emission vehicles will continue under the current flat-rate system.

Do I need to submit the mileage myself?

The mileage will be recorded automatically via your MOT, so you won’t need to report it separately.

Does the new EV mileage tax affect existing VED bands?

No, it does not replace current VED bands. Electric and plug-in hybrid vehicles will continue to pay the standard VED for their band, with the new mileage-based tax applied in addition once introduced.

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