26% also believe claiming business miles will become significantly more difficult according to Venson research
New research from Venson Automotive Solutions reveals that 62% of drivers say the introduction of Electric Vehicle Excise Duty (eVED) on electric cars will discourage them from switching, with almost a quarter (24%) confirming it will have a significant impact on their future purchase decisions. The findings come as the Office for Budget Responsibility warns that the new tax and other budget measures could reduce EV sales by 120,000 vehicles between 2025/26 and 2030/31.
The new Electric Vehicle Excise Duty (eVED) is an extension of the current Vehicle Excise Duty (VED) regime and will take effect from April 2028. It will require drivers to record their mileage with the DVLA, providing both an odometer reading and an estimate of their mileage for the coming year, with the resulting eVED charge payable alongside their existing VED payment. Actual mileage will then be reconciled against this estimate, using MOT records where available. The system is forecast to raise £1.9 billion for the Exchequer in 2030/31. While almost a quarter of the motorists Venson surveyed support the introduction of eVED, 46% consider it unfair.
Although Government has introduced arrangements intended to simplify compliance for leasing and rental businesses, including the ability to estimate vehicle mileage centrally, it does acknowledge that the administrative impact could be material for some businesses, particularly large fleets. Unsurprisingly, 26% of drivers believe the practical implications of eVED will make claiming business travel expenses significantly more difficult.
Simon Staton, Client Management Director at Venson Automotive Solutions, comments: “The negative reaction to eVED is hardly surprising. The fact that almost two-thirds of drivers say they are put off switching to an electric car because of the tax should ring alarm bells for policy makers.
“Fleet has spearheaded the road to electric, helped by attractive BiK rates. Yet, just as fleets are driving EV adoption, the sector is now rewarded with only a two-year window to incorporate an incredibly complex vehicle mileage reporting system into their day-to-day operations to comply with eVED.
“At such a crucial point where Government is trying to encourage more people to switch to electric, the introduction of eVED risks upsetting the apple cart, not just with retail buyers, but with crucial fleet stalwarts who have long been the frontrunner in the drive to electric.”