The UK Government’s new eVED tax regime will not now require routine mileage checks on cars less than three years old, ministers have said.
The change has been made in part to reduce the burden on the MOT network, which will be required to provide mileage checks for older vehicles as part of the MOT testing regime.
eVED, which was unveiled as part of the 2025 Autumn Budget, will apply a new tax at 3p-per-mile for full EVs, and 1.5p-per-mile for plug-in hybrids, beginning in April 2028.
A consultation on this policy closed earlier this year, and the Government has now published its response.
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The original eVED proposal included cars under three years old being subjected to additional mileage checks, due to them not being old enough to be subject to MOT tests. Instead of this, the Government now says motorists will be required, at each VED renewal, to provide a mileage reading from their car’s odometer, and an estimated mileage for the year ahead so that the DVLA can work out an estimated eVED liability.
The consultation response states: “The government expects motorists and other keepers to provide accurate mileage estimates to minimise the risk of significant balancing payments when mileage is reconciled.
“DVLA will have the ability to require an official mileage check outside of the MOT cycle, including for vehicles less than three years old, where there is a reasonable suspicion of fraud or non-compliance, to help deter inaccurate reporting and support the effective operation of the tax.”
The Government says it will also begin developing a system which will allow motorists to use connected car technology to submit mileage data directly from their car – although this will not be compulsory.
Government to work with MOT industry
With the MOT network set to play a central role in the eVED data-gathering process, consultation respondents argued that garages would need clear guidance, training and ongoing technical assistance to take part, and that they should also have appropriate protection from liability.
On the subject of MOT providers, the consultation response states: “The Government will continue to work closely with the MOT industry to minimise the impact of these changes and ensure that fees or payments for work reflect costs.
“The Government will also work with industry on ensuring that any changes to the MOT process – for example handling of non-functioning odometers – have clear guidance for those conducting the work.”
Special arrangements for fleets
In its consultation response, the Government acknowledges the views from respondents that its proposals would have created a “significant administrative burden” for fleet, rental and leasing companies.
As part of its mitigation for this, where private motorists will be required to submit mileage figures from their car’s odometer, fleets will be allowed to submit estimates centrally.
Fleets will also be given the option to make payments in bulk, and to settle outstanding liabilities by making top-up payments before cars are defleeted.
Changes not enough to stem concerns
Reacting to the consultation response, Sue Robinson, chief executive at the National Franchised Dealers Association (NFDA) , said: ‘The industry is working harder than ever to encourage greater EV uptake; eVED risks that additional costs for EV ownership could deter consumers from making the switch.
“We’re concerned at the overcomplexity, the burdening cost to the industry and the reliance on the accuracy of the data.
“Following eVED and the potential complications, it is essential that motorists are provided with clear guidance on how the new arrangements will work, allowing them to make informed decisions when purchasing electric vehicles.”
Vicky Edmonds, chief executive officer at EV driver advocacy group EVA England, said: “This policy still does not work for drivers. The Government has made one welcome change for newer EVs, but the wider scheme remains too complex, risks leaving people out of pocket and fails to give drivers the confidence they need.
“At such a crucial point in the switch to electric, ministers should be making the system simpler, fairer and easier to understand, not pressing ahead with a policy whose key faults remain unresolved. This now piles pressure on the public charging review that must pave the way for affordable charging, or this transition simply won’t work for drivers.”
Concern over mileage anomalies
Giving its reaction, the Institute of the Motor Industry (IMI) said that although several of the changes made to the plan were welcome, there remained a flaw in “the assumption that every MOT garage will be equipped to deal with EV mileage anomalies”. The Government has said that it will work with the industry on “ensuring that any changes to the MOT process – for example handling of non-functioning odometers – have clear guidance for those conducting the work”.
Nick Connor, CEO at the IMI, said: “The consultation outcome shows the Government has genuinely listened to the automotive profession. Ruling out mandatory telematics, building eVED into the existing VED and DVLA systems, anchoring mileage validation in the MOT, and committing to simple reconciliation and sensible arrangements for fleets and lifecycle events are all things the IMI called for. That is a pragmatic foundation, and we welcome it.
“However, there is one big question the response does not yet answer: can eVED be delivered safely and consistently if the system assumes every MOT garage can deal with EV mileage anomalies? The risks around odometer tampering, mileage data being held in more than one place in a vehicle, and the central role MOT garages will play in recording mileage have been recognised in the consultation response, yet there is no clear plan of how those risks will be managed on the workshop floor.
“Diagnostic capability varies significantly across the MOT network. Reading a dashboard odometer is one thing; investigating a disputed, missing or potentially tampered mileage reading on an electric vehicle is quite another.
“We are, therefore, urging Government to adopt a number of practices we proposed in our submission to the consultation. There need to be clear diagnostic escalation routes, competence-based accreditation and standards aligned with IMI TechSafe. There also needs to be a clear commitment to support for garages on equipment and training.
“Without these, disputes will fall inconsistently on garages, motorists and the DVLA, and public confidence in the new tax will suffer.”