{"id":711889,"date":"2026-07-26T11:22:09","date_gmt":"2026-07-26T11:22:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/711889\/"},"modified":"2026-07-26T11:22:09","modified_gmt":"2026-07-26T11:22:09","slug":"rachel-reeves-new-300-car-tax-scheme-has-1-major-problem-you-couldnt-make-this-up","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/711889\/","title":{"rendered":"Rachel Reeves’ new \u00a3300 car tax scheme has 1 major problem – you couldn’t make this up"},"content":{"rendered":"

Rachel Reeves’<\/a> latest \u00a3300 car tax scheme has one major problem, with Treasury officials confirming one issue with the upcoming electric Vehicle Excise Duty (eVED)<\/a> scheme. A new pay-per-mile tax fee is set to hit road users from April 2028<\/a>, with electric car<\/a> owners charged 3p per mile and hybrids 1.5p per mile. It means those averaging 10,000 miles per year will need to pay \u00a3300 per annum to use the roads.<\/p>\n

The latest Treasury report into eVED explained that the new pay-per-mile system “will not support automatic refunds” from the outset in a possible blow for road users. Motorists will have to estimate their annual mileage, with real figures calculated at the annual MOT test.<\/p>\n

\"Rear<\/p>\n

Electric pay-per-mile fees will be introduced in 2028 (Image: Getty)<\/p>\n

It means road users who have over-calculated their travel<\/a> would have therefore paid more than they needed to and will be entitled to some money back.<\/p>\n

However, the Treasury report reads: “The government recognises the benefit of more automated arrangements at the point of lifecycle events, including change of keepership and where a car is scrapped or declared SORN.<\/p>\n

“The new eVED system will not support automatic refunds at launch due to the significant and complex work required to amend the DVLA legacy vehicle systems.”<\/p>\n

The Treasury explained that motorists who drive fewer miles than estimated will pick up mileage credits<\/a> that will ordinarily be carried forward into the next licensing period. This will then be offset against future electric VED liabilities in future tax years.<\/p>\n

Ben Nelmes, CEO of New AutoMotive, has called out the decision not to introduce automatic refunds.<\/p>\n

He said: “It is staggering that the DVLA’s legacy computers are unable even to process a simple automatic refund when someone sells or scraps their car. That in itself should be a massive red flag for the incoming Government about the deliverability of this policy.”<\/p>\n

However, the DVLA has explained that further information around how refunds will work will be released later this year.<\/p>\n

They said: “The Government’s consultation response sets out that, at launch, the scheme will prioritise carrying credits forward rather than introducing automatic refunds for every possible circumstance.<\/p>\n

“Refunds will also be available in a number of specific situations, including where there has been an unexpected change in financial circumstances. Further details on refunds relating to changes of keeper and other vehicle lifecycle events will be announced later this year.”<\/p>\n","protected":false},"excerpt":{"rendered":"Rachel Reeves’ latest \u00a3300 car tax scheme has one major problem, with Treasury officials confirming one issue with…\n","protected":false},"author":2,"featured_media":360343,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[84,59,56,54,55],"class_list":["post-711889","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-business","tag-gb","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/711889","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=711889"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/711889\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/360343"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=711889"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=711889"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=711889"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}