New EV tax on the horizon: What it means for UK businesses
New EV Tax by Stephen Buckley, Sales Manager, Fleetmaxx Solutions, Burnley
The BBC has reported that electric vehicle (EV) fleets could face a new tax in this month’s Budget, as the Chancellor looks for ways to plug a growing gap in motoring-related revenue.
With fuel duty covering petrol and diesel but no equivalent for EVs, there have been “conversations” within government about introducing a pay-per-mile levy for electric vehicles from 2028. According to the Daily Telegraph, the proposal could see EV fleets paying around 3p per mile, adding roughly £12 to a trip from London to Edinburgh. Hybrid fleet operators would also face a smaller charge.
The suggested model would require EV owners to estimate their annual mileage in advance and pay accordingly — with either a refund or a top-up at year-end depending on how much they’ve driven.
A balancing act between fairness and transition
The government insists it still backs the transition to electric vehicles, pointing to £4bn in support and grants worth up to £3,750 per vehicle. Officials say any new system would be designed to ensure “a fairer approach for all drivers” while maintaining investment in roads and infrastructure.
However, many within the industry have warned that introducing a pay-per-mile tax could stall EV adoption at a critical time.
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The Society of Motor Manufacturers and Traders (SMMT) described it as “the wrong measure, at the wrong time.”
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The AA said the government should “tread carefully” to avoid slowing down EV uptake.
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Autotrader added that higher running costs could make EVs less appealing, reducing demand.
There’s no question that the shift from internal combustion engine (ICE) vehicles to electric has created a tax gap in Treasury income. But as fleets work hard to modernise, many believe the government should focus on incentives and infrastructure rather than penalties.
Supporting fleets through change
At Fleetmaxx Solutions, we understand that whether you’re running a traditional diesel fleet, transitioning to EVs, or operating a mix of both, keeping costs under control is vital.
✅ For ICE fleets, our fuel card customers save up to 10p per litre on fuel — helping offset rising costs and uncertainty at the pump.
✅ For EV fleets, our Business Homecharge and EV Charge Card solutions simplify fleet charging, offering access to thousands of UK charge points and easy expense management.
We will continue to monitor developments closely as the Budget approaches. Whatever changes are announced, you can rely on Fleetmaxx Solutions to help you stay efficient, compliant, and cost-effective on the road ahead.
📞 Call us today on 01367 704 910 to discover how we can support your fleet — petrol, diesel, hybrid, or electric.
