EV running costs are still often cheaper day to day, but the UK tax picture is no longer "set and forget". Since April 2025, electric cars have been pulled into Vehicle Excise Duty (VED), and the numbers were updated again from 1 April 2026.
If you are trying to budget properly (or you track mileage for work), the key is understanding which bucket your car sits in: when it was first registered, and whether it crosses the list price threshold for the Expensive Car Supplement.
The headline VED rates for EVs (1 April 2026 to 31 March 2027)
According to the UK government guidance, EV VED depends on registration date:
- EVs registered on or after 1 April 2025: £10 in the first year, then the standard rate of £200 from year two onwards.
- EVs registered between 1 April 2017 and 31 March 2025: standard rate of £200.
- EVs registered between 1 March 2001 and 31 March 2017: £20 (standard rate for that band).
The practical takeaway is that for many EV drivers in 2026, the number you will actually notice each year is £200.
The bit that catches people out, the "luxury car tax" on EVs
VED has an additional charge called the Expensive Car Supplement (often called "luxury car tax"). It is paid for five years, starting from the second year of the car's life, on top of the standard rate.
From April 2026, the government guidance for EVs uses a list price of more than £50,000 for the supplement. This is important because:
- It is based on the list price (P11D / as-new price), not what you actually paid after discounts.
- Options can push a car over the line, even if the base model is under it.
- It affects years 2 to 6, so it can feel like a surprise cost after the first year.
If you are choosing between trims, battery sizes, or option packs, this threshold can be the difference between "normal" VED and a noticeably higher annual bill for several years.
A quick way to estimate your EV road tax
To get a rough annual figure, ask two questions:
- When was the car first registered? That tells you whether you are likely on £200, £20, or a first-year rate.
- Was the list price more than £50,000? If yes and the car was registered on or after 1 April 2025, budget for the supplement in years 2 to 6.
It is not "one number for all EVs", but it is close for most drivers, and knowing the rules means you can plan rather than guess.
Why mileage tracking still matters even though VED is not mileage-based (yet)
VED itself is a fixed annual cost, but it sits alongside the bigger running-cost picture: charging, tyres, insurance, depreciation, and (for some drivers) business mileage claims.
Keeping a clean mileage record helps you:
- work out your cost per mile more accurately (especially if you are comparing an EV to a petrol or hybrid alternative),
- separate work vs personal journeys without trying to reconstruct it months later,
- spot changes in driving patterns, for example a new commute, increased client visits, or longer weekend trips.
And with the UK continuing to debate future ways of taxing road use as fuel duty declines, having your own mileage history in good order is a sensible "no regrets" move.
Practical tips to avoid surprises
- Check the V5C registration date before you assume what you will pay.
- Check the list price for your exact spec, not just the headline "from" price on adverts.
- Budget annually, even if you pay monthly, so the real cost is visible.
- Log mileage regularly, especially if you claim business mileage or track running costs month by month.
EV costs are still very manageable, but they are becoming more detailed. A little clarity now makes it easier to make good choices later.
Track every mile with less faff
Ready to keep your EV mileage, trips, and running costs tidy?
Mileage Tracker helps you log journeys, stay on top of costs, and keep cleaner records for work or personal driving.