Certain drivers may be subjected to more expensive pay-per-mile charges when the system is launched in 2028, according to an admission by the Treasury. The new Electric Vehicle Excise Duty (eVED) is set to charge EV drivers 3p per mile to use the roads, with plug-in hybrid owners slapped with a 1.5p per mile rate.
The new charge will be introduced in a bid to offset declining fuel duty revenues, with motorists asked to predict their annual electric car mileage before offsetting any additional costs once their odometer is checked at their MOT. Since Rachel Reeves' announcement, experts have raised fears that the policy could lead to an increase in mileage fraud, with a rise in clocked cars likely.
However, a line in the Treasury's latest eVED consultation suggests the Government is aware of a likely spike in fraud and is already prepared to strike back. The document admits road users found to be declaring “inaccurate mileage” may be hit with higher pay-per-mile rates.
The Treasury report reads: “The government recognises that the non-alignment of eVED periods and MOTs means that there will be scope for some motorists to declare inaccurate mileage readings without this being immediately apparent. By under-declaring mileage, motorists run the risk of their mileage being subject to an increased rate in future years.”
However, the document doesn't say by exactly how much pay-per-mile fees could increase for electric car owners or plug-in hybrid drivers. Estimates have suggested that around 2.3% of UK vehicles on the road may show signs of clocking.
The Treasury has explained that the responsibility will be on the owners of vehicles to report their mileage correctly and to ensure their odometer is functioning. However, they have stressed that vehicle manufacturers will be responsible for ensuring that odometers cannot be tampered with.
Meanwhile, MOT garages will be responsible for making sure that mileages are recorded accurately during tests. In an apparent warning to road users, the Treasury suggested it would be difficult for motorists to get away with under-reporting their vehicle’s mileage.
The Treasury report added: “Since the odometer reading will be reflected in the sale price when the vehicle changes ownership, and an official mileage reading is required when a vehicle is scrapped, under-declaration will ultimately always be identified.”