Older drivers in Wales who own electric vehicles could face an annual charge of nearly £50 under a new car tax rule set to take effect in 2028. The Labour government's Electric Vehicle Excise Duty (eVED) scheme will require EV owners to pay 3p per mile from April 2028, as part of efforts to recover lost fuel duty revenue amid the shift to electric cars.
Costs for older drivers
According to Taking Care Personal Alarms, drivers aged over 70 cover an average of 1,665 miles per year. A straightforward calculation shows that motorists travelling this distance annually would face eVED charges of £49.95.
The financial impact extends to plug-in hybrid owners, who will face a 1.5p per mile charge under the new regulations. Over 1,665 miles, older drivers of hybrid vehicles can expect to pay an additional £24.98 each year, reports the Express.
How the scheme works
Age UK previously explained: "From 2028, EV owners will pay a 3p per mile surcharge on their Vehicle Excise Duty (VED), which brings another cost into the equation. This government tax is designed to increase revenue lost to fuel duty."
The new eVED charges will be levied in addition to current Vehicle Excise Duty payments, though the overall costs are anticipated to remain below the fuel duty charges incurred by petrol and diesel vehicle owners.
Drivers will be required to pay eVED fees in advance, with mileage subsequently used to establish whether motorists have correctly estimated their yearly road usage.
Administration details
HM Revenue and Customs explained: "VED is administered by Driver and Vehicle Licensing Agency (DVLA). They will also administer eVED."
Motorists will pay an upfront charge based on their estimate or spread their payment across the year, with the year-end mileage reading triggering a reconciliation. Mileage data from cars is currently collected at annual MOTs and is available to view for most cars on GOV.UK.
