UK Motoring Tax Calculator
Compare annual motoring costs across EV, hybrid, and petrol/diesel vehicles. See how upcoming tax changes affect what you pay.
UK average is ~7,100 miles/year
List price including options and VAT
Used for ICE/hybrid VED and BiK rates
Toggle to see Benefit in Kind (BiK) tax
Electric (EV)
VED (Road Tax)
Luxury Car Supplement
Fuel Duty / Road Pricing
Proposed from April 2028
Plug-in Hybrid
VED (Road Tax)
Luxury Car Supplement
Fuel Duty / Road Pricing
Proposed from April 2028
Petrol / Diesel
VED (Road Tax)
Luxury Car Supplement
Fuel Duty / Road Pricing
Luxury car threshold: £40,000 (ICE/Hybrid), £50,000 (EV)
Your Mileage Tax Relief
HMRC Approved Mileage Allowance Payments (AMAPs)
Applies to business and work-related trips only — not personal mileage. You must keep accurate records of qualifying journeys.
Every untracked mile is money left on the table
Lease Excess Mileage
Going over your lease allowance?
Accurate tracking helps you adjust early and avoid excess charges
Track Every Mile. Maximise Your Savings.
MileEZ automatically logs your mileage so you never miss a claimable mile or go over your lease allowance.
Rates shown are based on published and proposed UK government figures. Pay-per-mile eVED is proposed from April 2028 and rates may change. This calculator is for illustrative purposes only — consult a tax professional for specific advice.
How UK Motoring Tax Works in 2025/26
UK drivers pay Vehicle Excise Duty (VED), commonly known as road tax, based on their vehicle's CO₂ emissions. From April 2025, electric vehicles lost their zero-emission VED exemption and now pay the standard annual rate of £195 (rising to £200 from April 2026). First-year rates vary by emissions band, ranging from £10 for zero-emission cars to over £5,000 for the highest-polluting vehicles.
Pay-Per-Mile Road Tax (eVED) from 2028
The UK government has confirmed a new Electric Vehicle Excise Duty (eVED) — a pay-per-mile road tax for electric and plug-in hybrid vehicles launching in April 2028. Fully electric cars will pay 3p per mile, while plug-in hybrids will pay 1.5p per mile. This replaces lost fuel duty revenue as more drivers switch to EVs. At 7,100 miles per year, an EV driver would pay approximately £213 annually in eVED.
Expensive Car Supplement (Luxury Car Tax)
Vehicles with a list price exceeding £40,000 (or £50,000 for electric vehicles from April 2026) are subject to the Expensive Car Supplement — an additional £425 per year (2025/26) or £440 per year (2026/27) payable for five years from the second year of registration. This applies on top of the standard VED rate.
Company Car Tax (Benefit in Kind)
Company car drivers pay Benefit in Kind (BiK) tax based on the vehicle's P11D value, CO₂ emissions, and their income tax band. Electric vehicles have the lowest BiK rates at just 3% (2025/26) or 4% (2026/27), compared to 25–37% for petrol and diesel cars. This makes EVs particularly attractive as company cars — a £40,000 electric company car costs a 40% taxpayer just £480 per year in BiK tax versus £5,280 or more for an equivalent petrol car.
HMRC Mileage Allowance for Business Driving
Self-employed drivers and employees using their own vehicle for business can claim HMRC's Approved Mileage Allowance Payments (AMAPs) at 45p per mile for the first 10,000 business miles and 25p per mile thereafter. Accurate mileage records are essential — every untracked business mile is potential tax relief lost. A driver covering 10,000 business miles could claim £4,500, saving £900 at the basic rate or £1,800 at the higher rate.
Why Accurate Mileage Tracking Matters
With pay-per-mile taxation arriving in 2028, accurate mileage tracking is becoming essential for every UK driver. Whether you're claiming HMRC mileage allowance, managing a lease to avoid excess mileage charges, or preparing for eVED, having reliable records protects you from overpaying. MileEZ automatically tracks every journey with GPS precision, categorises business and personal trips, and generates tax-ready reports — so you never miss a claimable mile.