More than 1.5 million motorists across the UK are now required to undergo a compulsory annual mileage verification as part of a significant shift in vehicle taxation rules.
New Pay-Per-Mile Tax System Explained
The changes, announced by Labour Chancellor Rachel Reeves during the recent Budget, introduce an Electric Vehicle Excise Duty (eVED) specifically for electric and plug-in hybrid vehicles.
Under the scheme, electric vehicle owners will pay 3p per mile, while plug-in hybrid drivers will pay 1.5p per mile. This new duty will be payable annually alongside the standard Vehicle Excise Duty.
For an average EV driver covering approximately 8,500 miles per year, this translates to an additional £255 in annual charges.
Mandatory MOT Centre Checks
To ensure accuracy in the self-reported mileage figures, the government is implementing a verification system requiring motorists to have their odometer readings checked at MOT centres.
The official consultation document states that electric vehicle owners must "be responsible for providing an accurate mileage reading" and confirms they are required to take "reasonable steps to ensure that the odometer is functioning correctly."
This means if an odometer is clearly not recording or displaying mileage accurately, the issue must be rectified before the verification can proceed.
Industry Reaction and Potential Impact
Speaking about the new tax system, Chancellor Rachel Reeves emphasised: "I will ensure that drivers are taxed according to how much they drive and not just by the type of car they own by introducing Electric Vehicle Excise Duty on electric cars."
She added that the revenue would contribute to doubling road maintenance funding in England over the course of the current Parliament.
However, industry experts have expressed concerns about the potential consequences. Maria Bengtsson, EY UK&I Mobility Leader, commented: "While it's positive that the rate of tax per mile for EV drivers will remain significantly lower than the effective rate for petrol and diesel drivers, this still represents a new additional cost for EV owners, and therefore a potential barrier to demand."
The new verification process represents one of the most significant changes to vehicle taxation in recent years and is expected to affect approximately 1.5 million drivers across the country.
