From road tax to company-car tax to pay-per-mile, here is what electric driving costs in the UK in 2026/27, plus the maintenance bills the tax debate leaves out.
If you have read that electric cars now cost more to tax, you are right, but the headline hides a more interesting picture. Road tax for EVs started in April 2025, the company-car rate stepped up in April 2026, and a pay-per-mile charge is confirmed for April 2028.
This guide puts the numbers side by side for private drivers, company-car drivers and garages, then covers what the tax debate leaves out: electric cars still wear parts. D2P is not a tax adviser, so treat the worked examples as illustrations and check your own position on GOV.UK or with an accountant.
The short answer
On tax alone, electric driving is generally still cheaper, and for company-car drivers by a wide margin. But the gap is narrowing every year, and for private drivers the real answer depends on your mileage and where you charge.
What has changed, and when
Some headlines still treat all of this as breaking news. In fact most of the rates below have been in force since spring 2026, and the next big change is not until April 2028.
- 1 April 2025: the road tax exemption for electric cars ended, for new and existing vehicles alike.
- 1 April 2026: the standard annual rate rose to £200 for 2026/27, and EVs registered from April 2025 with a list price above £50,000 pay the expensive car supplement.
- 6 April 2026: the company-car (BIK) rate for fully electric cars moved from 3% to 4%.
- July 2026: the government's response to the eVED consultation confirmed it is pressing ahead with a pay-per-mile charge.
- April 2028: eVED is due to begin.
Road tax (VED) for electric cars in 2026/27
What you pay depends on when the car was first registered. These are the GOV.UK rates for 1 April 2026 to 31 March 2027, checked in October 2026.
| When the electric car was first registered | What you pay in 2026/27 |
|---|---|
| On or after 1 April 2025 | £10 for the first year, then the £200 standard rate |
| 1 April 2017 to 31 March 2025 | £200 standard rate |
| 1 March 2001 to 31 March 2017 | £20 standard rate |
If an electric car was registered on or after 1 April 2025 and its list price was above £50,000, an extra £440 a year applies for five years from the second tax payment, taking the annual bill to £640. For comparison, the same supplement hits petrol and diesel cars from £40,000, and their first-year rate is based on CO₂ emissions, climbing to £5,690 in the top band.
Company-car tax (BIK): still low, but climbing
Benefit-in-kind tax is worked out as P11D value × BIK percentage × your income tax rate. For fully electric cars the percentage is 4% in 2026/27, then 5% in 2027/28, 7% in 2028/29 and 9% in 2029/30.
Here is what that means for a £40,000 car, assuming income tax rates stay as they are today.
| Tax year | EV BIK rate | Annual tax, 20% taxpayer | Annual tax, 40% taxpayer |
|---|---|---|---|
| 2026/27 | 4% | £320 | £640 |
| 2027/28 | 5% | £400 | £800 |
| 2028/29 | 7% | £560 | £1,120 |
| 2029/30 | 9% | £720 | £1,440 |
For scale, the same £40,000 car at an illustrative 30% petrol rate would cost £2,400 (20% taxpayer) or £4,800 (40% taxpayer) a year. Petrol BIK rates vary with CO₂ emissions, so 30% is an example, not a quote. These figures exclude any salary-sacrifice or employee-contribution arrangements, so your payslip or an accountant will give the exact number.
Pay-per-mile (eVED) from April 2028
The government plans to introduce Electric Vehicle Excise Duty (eVED) from April 2028, with a proposed rate of 3p per mile for fully electric cars and 1.5p per mile for plug-in hybrids. The final details remain subject to legislation. It is paid on top of standard road tax rather than replacing it, based on estimated mileage and then adjusted against actual mileage. The rate is due to rise each year with CPI, and the government describes 3p as roughly half the fuel duty an average petrol or diesel driver pays. The legislation still has to complete its passage, so check GOV.UK and the House of Commons Library briefing for the final detail.
As an illustration only: 8,000 miles a year at 3p a mile would be £240 a year, and 12,000 miles would be £360.
So, is electric driving still cheaper?
On tax, generally yes. A private owner of a car registered after April 2017 now pays the same £200 standard rate as a petrol or diesel driver, but starts with a £10 first-year rate and, from 2028, will pay a per-mile charge the government puts at around half the fuel duty an average combustion driver pays. Company-car drivers see the biggest gap, even as the BIK rate climbs.
What tax cannot answer is fuel against electricity. That depends on your tariff, how much you charge at home and how much you rely on public chargers. A simple way to check your own numbers:
- Estimate your annual mileage.
- Work out your annual energy cost: your home tariff, plus any public charging you rely on.
- Add road tax (£200, plus £440 if the supplement applies) and, from April 2028, 3p a mile.
- Compare with your current car's fuel, road tax and insurance costs.
- Add servicing and wear-part costs for both cars, because both have them.
The cost the tax debate leaves out: EVs still wear parts
It is tempting to think an electric car has nothing left to wear out. The reality is more balanced. EVs skip oil changes, but they still have brakes, suspension, steering and tyres, and a tax saving is worth less if a neglected wear part turns into an MOT failure.
Brakes: pads often last longer, but corrosion is the catch
Regenerative braking does much of the slowing, so friction pads often last longer than on a combustion car, not shorter. The trade-off is that rarely used pads, discs and caliper slide pins can corrode, so they deserve a look at service time even when the pads look thick. A caliper that drags, pulls under braking or leaves one wheel hotter than the others should be checked promptly. Browse D2P's brake parts range, including parking brake modules, caliper servo motors and cables, and check fitment by registration.
Suspension and tyres: weight matters
Battery packs make many EVs heavier than a similar combustion car, which puts extra load through tyres, suspension and brakes. How much that matters depends on the car, the roads and your driving, so there is no universal wear figure. But bushes, strut mounts, drop links and control arms are worth inspecting at each service and before the MOT, and a quiet cabin makes clunks and knocks easier to hear. D2P's suspension parts range covers strut mounts, bushings, control arms and more, and the registration finder shows what fits your car.
| Part | Why it matters on an EV | What to look for |
|---|---|---|
| Caliper slide pins and pistons | Friction brakes work less often, so under-used hardware can corrode or stick. | Dragging or pulling under braking, uneven pad wear, one wheel running hot. |
| Brake discs and pads | Pads often last longer, but corrosion on rarely used surfaces can still shorten life. | Brake noise, rusty or scored discs, pad material lifting from the backing plate. |
| Bushes, strut mounts, drop links, control arms | Extra battery weight loads the suspension, and a quiet cabin exposes knocks. | Clunks over bumps, vague steering, uneven tyre wear. |
| Cabin air filter | A routine service item on any car, electric or not. | Weak airflow, misting windows, a musty smell. |
High-voltage systems are not a DIY job
The battery, motor, inverter and charging system should only be worked on by a technician trained for high-voltage vehicles. The wear items in this guide, such as brakes, suspension and filters, are standard workshop jobs.
For shared wear items like these, a branded aftermarket part built to OEM-equivalent specification is the informed way to keep running costs down without cutting corners on safety. Check the part number, read the warranty conditions and confirm fitment by registration. Our guide to choosing the right aftermarket car parts shows how.
Garage or workshop servicing more EVs?
The D2P Trade Programme gives verified garages and workshops 10% off, rising to as much as 15% on higher-volume orders, with no minimum order quantity. It is discount-based rather than a credit account, and pricing is applied automatically at checkout. Apply for trade pricing.
Key takeaways
- EVs pay road tax: £10 in the first year for cars registered from April 2025, then £200, plus £440 a year for five years above a £50,000 list price.
- Company-car BIK for EVs is 4% in 2026/27, rising to 9% by 2029/30, still far below typical petrol rates.
- Pay-per-mile eVED of 3p a mile is due from April 2028, on top of road tax.
- EVs still wear brakes, suspension and tyres. Check calipers, bushes and mounts, and leave high-voltage work to trained technicians.
Frequently asked questions
Do electric cars pay road tax in 2026/27?
Yes. The exemption ended on 1 April 2025 and applies to new and existing electric cars. For 2026/27, an electric car registered on or after 1 April 2025 pays £10 for the first year and then the £200 standard rate. Electric cars registered between 1 April 2017 and 31 March 2025 pay £200, and those registered between 1 March 2001 and 31 March 2017 pay £20.
What is the expensive car supplement for electric cars?
If an electric car was registered on or after 1 April 2025 and has a list price above £50,000, an extra £440 a year is added to the standard rate for five years, starting from the second tax payment. That takes the annual bill to £640 for those years.
What is the company-car (BIK) rate for electric cars?
The appropriate percentage for fully electric cars is 4% in 2026/27, rising to 5% in 2027/28, 7% in 2028/29 and 9% in 2029/30. Your tax is the car's P11D value multiplied by that percentage and by your income tax rate.
When does pay-per-mile tax for electric cars start?
The government has confirmed that Electric Vehicle Excise Duty (eVED) is due to start in April 2028 at 3p a mile for pure electric cars and 1.5p a mile for plug-in hybrids. It is paid on top of standard road tax and is due to rise each year with CPI. Check GOV.UK for the final detail as the legislation completes its passage.
Do electric cars wear out brake pads faster?
Usually not. Regenerative braking takes much of the load, so pads often last longer than on a combustion car. The catch is corrosion: rarely used discs, pads and caliper slide pins can seize or rust, so they are worth checking at each service even when the pads look thick.
Do electric cars still need suspension and brake parts?
Yes. Electric cars still have brakes, suspension, steering and tyres, and the extra weight of the battery puts more load through them than on many similar combustion cars. Bushes, strut mounts, drop links and control arms should be inspected at service time and before the MOT. Fitment is vehicle-specific, so check by registration before you order.
Find the right part first time
Enter your registration number and D2P matches your make, model, engine and year, so you can check fitment before you order.
Sources
- GOV.UK: Vehicle tax for electric, zero and low emission vehicles
- GOV.UK: Vehicle tax rates
- House of Commons Library: Electric vehicle excise duty (eVED)
Rates are for 2026/27 and can change at fiscal events. This article is general information, not tax or financial advice.
