Chancellor Rachel Reeves' new pay-per-mile tax regime will introduce mandatory annual mileage checks for UK drivers, with verification integrated into the existing MOT testing system, the Treasury has confirmed.
How the Mileage Verification System Will Work
Under the new electric Vehicle Excise Duty (eVED) scheme, motorists will be required to estimate their annual mileage at the start of each year and pay the corresponding tax upfront. These estimates will then be verified against the vehicle's odometer reading during the annual MOT test. Drivers who have driven more than their estimate will need to pay the difference, while those who have driven less will accumulate mileage credit that can be carried forward to the next licensing period.
The Treasury's report states: "Mileage verification for vehicles subject to MOT testing will be undertaken through the existing MOT network. It is also expected that the small number of additional ad hoc checks required will be conducted through this network."
New Tax Rates and Implementation Timeline
The eVED scheme is set to launch in April 2028. Electric cars will be charged 3p per mile, while plug-in hybrids will pay 1.5p per mile. The Government has confirmed it will work with the industry to provide clear guidance for MOT testers, including how to handle vehicles with non-functioning odometers.
For cars under three years old, which are exempt from mandatory MOT tests, the Government has decided not to require separate mileage checks to minimize the burden on motorists and businesses. However, officials stress that the DVLA retains the power to demand mileage readings at any time if there is reasonable suspicion of fraud or non-compliance.
Enforcement and Compliance
The Treasury added: "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 new rules are part of broader efforts to ensure fair taxation as the UK transitions to electric vehicles, with the revenue intended to compensate for the loss of traditional fuel duty.
