Proposed UK Pay Per Mile Tax on EVs Explained: What It Means for Drivers and Why It Shouldn’t Panic You
Electric vehicles are getting more popular every month, and with that comes a lot of chatter about how the UK Government plans to replace lost fuel duty. One idea floating around is a pay per mile tax for EVs. Sounds dramatic, but let’s walk through what’s actually being discussed and why it’s nowhere near as scary as the headlines make it look.
What is a pay per mile EV tax?
As more drivers switch to electric, the Government is looking at ways to maintain tax revenue that currently comes from petrol and diesel sales. A pay per mile system would charge drivers based on distance travelled instead of fuel purchased. Think of it like road tax with a Fitbit attached. You move, it notices.
Right now, this is only a proposal. Nothing is confirmed, signed, sealed or delivered. Even the people drafting the ideas are still scratching their heads over how it would work fairly, securely and without making the general public riot.
When could this happen?
Here’s the big one: not before 2028. The Government has already said any pay per mile system would require long, detailed consultations, trials and endless meetings where someone definitely brings the wrong spreadsheet. That means nothing changes this year, next year, or the year after that.
If your EV lease ends before 2028, you will not be affected by this. Full stop.
Will it affect current EV leasing deals?
Nope. Nada. Absolutely not. If you take out an EV lease now, or any time over the next few years, this proposed tax is about as relevant as a VHS player. Your payments, your running costs and your day-to-day experience won’t change under any proposed system until the Government actually finalises something, and that is years away.
Why EVs are still insanely good value right now
EVs are cheaper to run, cheaper to maintain and, at LINGsCARS, ridiculously cheap to lease. We still have the £3,750 EV grant helping cut down lease costs. That is real, active right now and saving customers a serious chunk of money.
Even if you ignore the tax chat, EVs are currently one of the most cost-effective ways to get behind the wheel of a brand new car. Low fuel costs, low maintenance, instant torque and the smug inner glow of knowing you’re not burning dinosaur juice. What’s not to like?
So should drivers worry?
Honestly, no. The pay per mile idea is years away, will go through layers of consultation and could look completely different by the time it emerges. Governments change, policies shift, and sometimes things get quietly shelved when someone realises they forgot to carry a one on the revenue forecast.
Right now, nothing changes for EV drivers. Nothing changes for anyone leasing an EV. And nothing changes for anyone thinking about taking advantage of the £3,750 saving and grabbing a seriously good deal.
If you want a future-proof, low-cost, planet-friendly car, EV leasing is still one of the best choices on the road.