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Video | Pay-per-mile EV tax explained
Running an EV is going to get more expensive – Rory has all the info you need right here
Words by: Dan Trent
Published on 19 March 2026 | 0 min read
Does the government want us to ditch our petrol and diesel cars for electric ones, or what? Big picture, yes it does in the name of air quality, sustainability and a host of other good reasons.
But there’s a problem. The government also gets a big chunk of its tax money – money to be spent on everything from schools and hospitals and everything in between – from that same petrol and diesel we pour into our tanks at the filling station forecourt. And … if everyone switches to electric that’s great for the environment but not so good for government spending power. So, while incentives to help us buy EVs by making them more affordable through the Electric Car Grant remain in place the advantage in running costs they enjoy over petrols, diesels and hybrids is soon to narrow with the introduction of pay-per-mile taxation, or Electric Vehicle Excise Duty. Or EVED for short. None of which sounds especially cheery. But here’s Rory, armed with all the facts to help myth-bust what’s going on, puts some numbers to it and explain in simple terms why it needs to happen. And might be the least bad outcome. Indeed, the government is still consulting on exactly how the system will work, and if you want your say you’ve got until the end of March to do so at the link here. And if you need some facts and figures to help frame your argument we’ve got you covered. True to say none of this is as sexy as sliding supercars around a track but, fear not, subscribe to the channel if you haven’t already and you’ll soon see Rory doing something along those lines in the not-too-distant future!
But there’s a problem. The government also gets a big chunk of its tax money – money to be spent on everything from schools and hospitals and everything in between – from that same petrol and diesel we pour into our tanks at the filling station forecourt. And … if everyone switches to electric that’s great for the environment but not so good for government spending power. So, while incentives to help us buy EVs by making them more affordable through the Electric Car Grant remain in place the advantage in running costs they enjoy over petrols, diesels and hybrids is soon to narrow with the introduction of pay-per-mile taxation, or Electric Vehicle Excise Duty. Or EVED for short. None of which sounds especially cheery. But here’s Rory, armed with all the facts to help myth-bust what’s going on, puts some numbers to it and explain in simple terms why it needs to happen. And might be the least bad outcome. Indeed, the government is still consulting on exactly how the system will work, and if you want your say you’ve got until the end of March to do so at the link here. And if you need some facts and figures to help frame your argument we’ve got you covered. True to say none of this is as sexy as sliding supercars around a track but, fear not, subscribe to the channel if you haven’t already and you’ll soon see Rory doing something along those lines in the not-too-distant future!