The big change: eVED from 2028
From April 2028, Electric Vehicle Excise Duty (eVED) will apply to EVs and plug-in hybrids. It’s a mileage-based tax, on top of normal VED.
EVs will still pay less than petrol or diesel in total, but the days of “tax-free motoring” are over.
What this means for company cars and fleets
If your business runs:
- Company cars
- Sales or service vehicles
- Delivery EVs
your future running cost calculations need to include:
- Fuel/electricity
- Insurance
- Maintenance
- VED and eVED combined
Action steps
- Get a full fleet cost review
Don’t just compare fuel savings, include all taxes and allowances. - Revisit your company car policy
BIK rules, EV incentives and eVED need to be considered together. - Plan replacement cycles now
If you’re due to replace vehicles between now and 2028, factor in how long you’ll run them and when eVED bites. - Encourage accurate mileage tracking
Good data will be vital once tax is directly linked to miles driven.
How can we help at MDH
Book a quick tax chat with me, no strings attached. We’ll have a look at your situation and spot opportunities you might be missing. And as a thank-you, I’ll send you a free copy of our book 75 Ways to Pay Less Tax, packed with simple, practical tips you can put to work straight away. Let’s make sure your money’s working smarter, not harder.
