Electric car owners face annual tax bill of £255

A new pay-per-mile charge for electric vehicles (EVs) and some hybrid cars was announced in last week's Budget.

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Tax looms on electric vehicles

All new cars will have to be electric or plugin hybrid from 2030 when a ban on the sale of new petrol and diesel cars comes into force.

From April 2028, electric car drivers will pay a road charge of 3p per mile while plugin hybrid drivers will pay 1.5p per mile. The rates will increase with inflation each year.

The government had previously said it wanted a fairer system for all drivers, pointing out that there was no equivalent of the fuel duty for petrol and diesel cars.

An electric car driver clocking up 8,500 miles a year is expected to pay £255. That would be about half the cost per mile that petrol and diesel drivers pay in fuel tax.