The Treasury has confirmed it is dropping plans to require mandatory mileage checks for new electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs) under three years old. Instead, the Government will rely on motorists to provide accurate mileage estimates, with verification occurring during the car's first MOT at three years.
The announcement comes in the Treasury's response to a consultation on electric vehicle excise duty (eVED), a new pay-per-mile tax set to be introduced in April 2028. The tax is designed to compensate for declining fuel duty revenue as more drivers switch from petrol and diesel cars to electric vehicles. The per-mile rate will initially be 3p for EVs and 1.5p for PHEVs.
Backlash prompts policy shift
A consultation launched in November last year proposed that cars under three years old—which are exempt from MOTs—would need to visit an “accredited provider” around their first and second anniversary for mileage checks. However, following a backlash, the Treasury has scrapped this requirement.
The eVED system will now operate on trust, with motorists providing mileage estimates. The first official check will occur during the vehicle's inaugural MOT on its third anniversary. If the actual mileage exceeds the estimates, balancing payments will be required at that point.
The Treasury noted that the DVLA will retain the power to demand an official mileage check outside the MOT cycle, including for vehicles under three years old, if there is a “reasonable suspicion of fraud or non-compliance.”
Industry reaction
Electric vehicle groups have welcomed the decision. Tanya Sinclair, chief executive of lobby group Electric Vehicles UK, said the Government has “listened where it matters.” She added: “Dropping mandatory mileage checks for cars under three years removes a significant speed bump that would have been a burden on new drivers and big fleets.”
However, Sinclair urged better communication: “Where Government still needs to do better is in how it communicates its policies to drivers. We still have a mix of incentives, taxes, grants and policies which don’t clearly echo its vision of an all-electric future.”
Toby Poston, chief executive of the British Vehicle Rental & Leasing Association, acknowledged that the Government has “taken some of the roughest edges off its eVED plans,” but insisted “you can’t create a smooth switch to electric vehicles by making them more expensive to own.” He added: “The mechanics of the tax may have improved, but the timing is still wrong.”
Simon Smith, chief executive of EV charging system manufacturer Voltempo, called the scrapping of under-three-year mileage checks “the right call,” noting that the original proposal “meant leased and rental vehicles off the road for checks that added cost, not value.”
Future developments
The consultation response also stated that the Government will explore options for drivers of cars with data connections to use them to provide mileage information automatically. Additionally, simplified eVED arrangements will be available for fleets and leasing companies, including enhanced payment flexibility and bulk licensing arrangements.
