The Treasury has confirmed that telematics systems could play a role in the administration of the new Electric Vehicle Excise Duty (eVED), set to launch in 2028.
While the system will not rely on mandatory telematics, the government has welcomed input on how vehicle data could be used to simplify mileage reporting and reduce administrative burdens. For fleets, this signals an opportunity to leverage existing telematics to improve accuracy, planning, and cost management.
How eVED works
Under eVED, fully electric vehicles will be charged 3p per mile, while plug-in hybrids will pay 1.5p per mile. Rather than tracking mileage automatically, the system will initially rely on motorists reporting their current odometer reading and providing an estimate for the year ahead.
At the end of the period, actual mileage will be reconciled against the estimate, with any underpayment resulting in a balancing charge and overpayment creating a credit for the following year. For fleet operators, accurate tracking will be essential to avoid unexpected costs and support operational budgeting.
The opportunity for fleets
Fleets already using telematics can benefit from more accurate mileage forecasts. By analysing real-world usage data, operators can predict annual mileage per vehicle and calculate expected eVED charges with confidence. This enables better financial planning and ensures fleet managers understand the impact on total running costs before the system is introduced.
Telematics also supports operational decisions, from vehicle assignment to scheduling, helping fleets optimise efficiency while preparing for the new charge.
Integrating telematics with operational systems
Platforms like Jaama’s Key2 bring telematics data together with vehicle, driver, and compliance information. By integrating all this data in a single system, fleet managers can monitor mileage, reducing administrative overhead and improving accuracy.
Key2 also enables managers to incorporate eVED estimates into broader cost and compliance planning, making it easier to stay ahead of regulatory changes while maintaining operational efficiency.
Looking ahead
With eVED approaching in 2028, fleets that already capture and integrate mileage data are better positioned to manage the transition smoothly. Using telematics in combination with integrated platforms allows operators to move from reactive reporting to proactive planning. Accurate, reliable data provides the visibility needed to forecast costs, support compliance, and make informed operational decisions, ensuring fleets are ready for the new era of EV taxation
