Government Drops Planned eVED Mileage Checks for Newer EVs and PHEVs

The Government has abandoned plans to make newer electric vehicles and plug-in hybrids undergo separate annual mileage inspections before their first MOT as part of the forthcoming electric Vehicle Excise Duty system.

The change follows a consultation on electric Vehicle Excise Duty, known as eVED, which received more than 5,000 responses between November 2025 and March 2026.

Under the revised system, drivers of newer battery-electric vehicles and plug-in hybrid electric vehicles will be able to declare their own mileage until the vehicle reaches its first MOT. Mileage will then be independently recorded through the existing annual MOT process.

However, the Institute of the Motor Industry has warned that the Government has not yet explained how MOT garages will be expected to handle disputed, missing or potentially manipulated EV mileage readings.

What is eVED?

Electric Vehicle Excise Duty is a new mileage-based charge scheduled to take effect from 1 April 2028.

It will apply alongside existing Vehicle Excise Duty rather than replacing the annual vehicle tax currently paid by EV drivers.

The initial rates are expected to be:

• 3p per mile for fully electric cars
• 1.5p per mile for plug-in hybrid cars

The lower rate for plug-in hybrids reflects the fact that these vehicles may also use petrol or diesel and therefore already contribute through fuel duty.

The Government says the charge is intended to help address the long-term decline in fuel duty revenue as increasing numbers of drivers switch to electric vehicles. It has also argued that the EV rate will remain below the average fuel-duty cost paid per mile by petrol and diesel drivers.

Separate mileage checks for newer vehicles dropped

The original consultation proposed annual mileage verification for vehicles that had not yet reached the age at which their first MOT becomes due.

This could have meant owners taking a car to an accredited provider for an odometer reading during the first and second years of its life, despite the vehicle not requiring a full MOT.

Following the consultation, the Government has dropped the proposed mandatory inspections for these newer vehicles.

Instead, motorists will declare an estimated mileage when completing their annual vehicle-tax renewal. A reconciliation process will compare estimated mileage with the vehicle’s actual mileage once a verified reading becomes available.

For most privately owned vehicles, the first independent reading will be captured when the vehicle undergoes its first MOT.

The DVLA will retain the power to require an official mileage inspection outside the normal MOT cycle where there is a reasonable suspicion of fraud or non-compliance.

How eVED payments are expected to work

Drivers will estimate how many miles they expect to cover during the coming year as part of the existing VED renewal process.

Payment for those miles will be collected alongside the vehicle’s normal VED payment. When an independently verified mileage reading becomes available, the amount paid can be reconciled against the mileage actually covered.

Motorists who have driven farther than estimated may therefore have an additional amount to pay, while adjustments will be made where the original estimate was too high.

The Government intends to integrate the system into existing DVLA vehicle-tax processes rather than create an entirely separate payment platform.

Special arrangements are also being developed for leasing, rental and fleet businesses, including options for centralised mileage estimates and administration.

No mandatory telematics or location tracking

The Government has not adopted mandatory GPS or telematics monitoring as the primary means of calculating eVED.

Instead, the system will be based principally on mileage declarations and odometer readings.

This avoids the need for the Government to collect routine vehicle-location information, although it means that mileage accumulated while a UK-registered vehicle is being driven abroad may still count towards the charge.

The IMI has welcomed the decision not to make telematics compulsory and supports the use of existing DVLA, VED and MOT systems as the basis for administering the tax.

What the change means for MOT garages

Removing separate inspections for vehicles under three years old should prevent MOT stations from being asked to undertake large numbers of stand-alone odometer checks.

The original proposal could have created an entirely new stream of short mileage-verification appointments for vehicles that were not otherwise due an MOT.

Under the revised model, the majority of mileage verification will take place during the existing MOT test.

This is likely to be simpler for motorists and should reduce the immediate administrative burden on garages.

However, it also gives the MOT network a central role in the operation and enforcement of the new tax. The mileage entered during the MOT could eventually be used to calculate whether a driver has paid the correct amount of eVED.

Accuracy in recording the odometer reading will therefore become even more important.

Garages may also face questions from customers about:

• Incorrect mileage entered on an MOT record
• Odometers that cannot be read
• Replacement instrument clusters
• Mileage recorded in kilometres rather than miles
• Vehicles with inconsistent historical readings
• Suspected odometer manipulation
• Disputes over eVED payment reconciliations

IMI welcomes practical changes but identifies a major flaw

The Institute of the Motor Industry has welcomed several elements of the Government’s response.

The professional body says ministers appear to have accepted a number of recommendations made in its consultation submission, including:

• Integrating eVED into established VED and DVLA systems
• Using the MOT to validate vehicle mileage
• Avoiding compulsory telematics
• Creating a straightforward reconciliation process
• Developing workable arrangements for fleets, leasing companies and changes of vehicle ownership

IMI Chief Executive Nick Connor described these elements as a pragmatic foundation for the system.

However, the IMI believes a critical delivery risk remains unresolved: the apparent assumption that every MOT garage will be equipped and qualified to deal with EV mileage anomalies.

Reading an odometer is not the same as investigating it

For a normal MOT test, the tester records the mileage displayed on the vehicle’s dashboard where it is available.

The IMI argues that investigating a disputed or potentially tampered reading is a very different task.

Modern electric vehicles may hold mileage information in more than one electronic control unit. Differences can arise following software issues, component replacement, repairs or deliberate manipulation.

Determining whether a displayed figure is accurate may require:

• Appropriate diagnostic equipment
• Access to manufacturer-specific systems
• Knowledge of where mileage data is stored
• The ability to compare information across control units
• An understanding of EV electrical and electronic architecture
• Safe working practices around electrified vehicles

Diagnostic capability currently varies considerably across the MOT network. Not every authorised testing station has invested in advanced EV diagnostic equipment, and not every MOT tester is trained to investigate electronic mileage discrepancies.

The IMI therefore warns that the Government cannot assume all MOT garages will be able to resolve an anomaly simply because they can record the mileage shown on the dashboard.

Odometer tampering could become a tax-enforcement issue

Mileage manipulation is already associated with vehicle valuation, leasing agreements and the used-car market.

Once mileage directly determines the amount of tax payable, altering or concealing a vehicle’s true mileage could also become a means of avoiding eVED.

This creates a distinction between the MOT station’s established responsibility to record the displayed mileage and any future expectation that it should identify or investigate suspected manipulation.

Garages will need clear instructions setting out:

• What an MOT tester must do when the displayed mileage appears incorrect
• Whether the tester is expected only to record the reading or challenge it
• How a suspected discrepancy should be reported
• When a vehicle should be referred to the DVLA
• Whether specialist diagnostics will be required
• Who pays for any additional investigation
• Who is responsible if a reading later proves inaccurate

Without clearly defined boundaries, garages could become involved in disputes between motorists and the DVLA over tax assessments.

IMI calls for accreditation, training and escalation procedures

The IMI is urging the Government to put a structured process in place before eVED goes live.

Its recommendations include clear diagnostic escalation routes for cases where mileage cannot be verified through a standard MOT inspection.

This could allow an ordinary MOT station to refer a complex case to an appropriately equipped specialist rather than being expected to resolve it itself.

The IMI is also calling for:

• Competence-based accreditation for technicians investigating EV mileage discrepancies
• Standards aligned with IMI TechSafe
• Support for garages investing in suitable diagnostic equipment
• Additional technical training
• Clear divisions of responsibility between garages and the DVLA

The organisation says that without these measures, disputed readings may be handled inconsistently across different MOT stations.

That could place unfair pressure on testers and garage owners while weakening public confidence in eVED.

Could eVED affect EV demand?

Although the IMI supports the principle of a mileage-linked motoring tax, it remains concerned about introducing additional costs while EV adoption is still developing.

The Office for Budget Responsibility has estimated that eVED and related Budget measures could result in around 120,000 fewer EV sales between the 2025/26 and 2030/31 financial years than would otherwise have taken place.

The Government says this represents approximately 2% of anticipated EV sales over that period.

The IMI has previously stressed that stable, clear and predictable taxation is important to consumer confidence, fleet planning and used-EV residual values.

What should MOT stations do now?

The scheme is not scheduled to begin until April 2028, and detailed operational guidance has yet to be finalised.

There is therefore no immediate change to the way MOT testers record vehicle mileage.

Garages should continue to follow the current MOT testing rules and record the odometer reading displayed at the time of the test where applicable.

However, Authorised Examiners may wish to follow future announcements from the DVLA, DVSA and the IMI closely.

As implementation approaches, businesses may need to consider:

• Staff awareness of the eVED process
• Accuracy when entering mileage during an MOT
• Procedures for correcting recording errors
• EV and hybrid training requirements
• Diagnostic equipment capability
• Customer communications
• Procedures for referring disputed mileage records

Garages should avoid investing in specialist equipment solely for eVED until the Government explains exactly what the MOT network will and will not be required to do.

The MOT network will be central to eVED

Dropping stand-alone mileage checks for newer EVs and PHEVs removes one of the most burdensome elements of the original proposal.

It should save motorists from making a separate annual visit during the period before their vehicle’s first MOT and prevent garages from having to accommodate millions of additional basic mileage-check appointments.

Nevertheless, the revised system places the MOT record at the centre of eVED verification.

That makes the IMI’s warning particularly important. Recording the number shown on an odometer is a familiar part of the MOT process, but investigating missing, disputed or potentially manipulated data can require specialist knowledge and equipment.

Before eVED begins on 1 April 2028, the Government will need to clarify where the MOT tester’s responsibility ends, how suspicious readings will be escalated and what support will be available to garages expected to undertake more advanced work.

Without that clarity, a policy designed to simplify mileage taxation could create a new area of risk and disagreement for MOT stations, motorists and the DVLA.

What is your view? Should MOT garages be expected to investigate mileage anomalies, or should complex cases be handled directly by the DVLA and specialist diagnostic centres? Readers are invited to add their comments below.

Government eVED consultation and response:
https://www.gov.uk/government/consultations/consultation-on-the-introduction-of-electric-vehicle-excise-duty-eved

Government eVED policy paper:
https://www.gov.uk/government/publications/electric-vehicle-excise-duty-eved/electric-vehicle-excise-duty-eved

IMI response to the Government’s eVED decision:
https://www.theimi.org.uk/industry-latest/news/eved-consultation-response-imi-highlights-flaw-government-plan

IMI original consultation submission:
https://tide.theimi.org.uk/sites/default/files/2026-05/EVED%20Consultation%20Response.pdf

House of Commons Library eVED briefing:
https://commonslibrary.parliament.uk/research-briefings/cbp-10607/