Electric versus plug-in hybrid: compare the whole tax picture
Compare mileage charges and price thresholds at the same mileage, then see why a lower per-mile rate may not mean a lower total.
The direct answer
Compare the same mileage, dates and price basis. The announced BEV mileage rate is 3p and the PHEV rate is 1.5p, but their supplement thresholds differ. At £45,000 and 12,000 miles, our 2028 illustrations are £560 for the BEV and £820 for the PHEV, holding current VED constant.
2028 full-year planning illustrations; current VED held constant. These examples explain the rules; they are not an individual tax assessment. Check DVLA or payroll for the amount payable.
Make the comparison answer one question
If you want to compare vehicle tax, give both cars the same annual mileage and renewal date. If you want to compare the full cost of ownership, add separate fuel, charging, insurance, servicing, finance and depreciation estimates. Switching between those two questions halfway through a comparison can produce a misleading “winner”.
These examples compare an ordinary battery electric car and a plug-in hybrid, each first registered on 1 April 2027, renewing on 1 April 2028. Neither has an exemption. We hold current £200 standard VED and £440 supplement rates constant and use announced launch mileage rates. Future VED is not forecast.
The mileage component: calculate it before adding anything else
At 8,000 miles, the launch-rate arithmetic is £240 for a BEV and £120 for a PHEV. At 12,000 miles it is £360 versus £180; at 20,000 miles it is £600 versus £300. These are our calculations using 3p and 1.5p per mile respectively.
The PHEV charge is on total mileage, rather than just miles driven on electricity. A 12,000-mile PHEV example therefore gives 12,000 × £0.015 = £180; replacing that mileage with an estimated 4,000 electric miles would incorrectly produce £60.
Same £35,000 original price: isolate the mileage difference
At a £35,000 original tax list price, neither of our example cars crosses its supplement threshold. At 12,000 miles, the BEV illustration is £200 + £0 + £360 = £560. The PHEV illustration is £200 + £0 + £180 = £380.
The £180 tax difference here is entirely the mileage component. It does not mean the PHEV is £180 cheaper overall: the examples omit its petrol purchases and the fuel duty within those purchases, as well as both cars’ other costs.
Same £45,000 original price: the thresholds change the result
Now change both original prices to £45,000. The BEV remains below its £50,000 threshold. The PHEV is above £40,000 and, in year two, attracts the £440 supplement. The illustrations become £560 for the BEV and £820 for the PHEV. The PHEV’s smaller mileage component has not offset the supplement in this case.
The difference is £820 − £560 = £260. This example shows why comparing per-mile rates alone can give the wrong answer to an annual vehicle-tax question. Original price, registration date and age still matter.
What the arithmetic means for a real shortlist
At the launch rates, the BEV–PHEV mileage difference is £0.015 for every mile. Dividing a £440 supplement difference by £0.015 gives about 29,333 miles. That is the mathematical crossover for this particular pair of assumptions, not a recommendation to drive that distance or choose either powertrain.
Use the real list price and first-registration date for each exact version before making a shortlist. A similarly named trim with different options can change the supplement position. For a running-cost comparison, add energy use and realistic charging habits as separate lines; do not assume a PHEV is charged daily or that a BEV always uses the cheapest electricity.
Worked examples: inputs and results
2028 full-year planning illustrations; current VED held constant. Hypothetical passenger cars, no exemptions. Annual-payment amounts; monthly figures are budgeting equivalents.
| Example / inputs | Annual VED | Supplement | Mileage | Annual total |
|---|---|---|---|---|
| BEV — £35,000, 12,000 milesOriginal list price £35,000 · first registered 1 April 2027 · renewal 1 April 2028 · 12,000 miles | £200 | £0 | £360 | £560 |
| PHEV — £35,000, 12,000 milesOriginal list price £35,000 · first registered 1 April 2027 · renewal 1 April 2028 · 12,000 miles | £200 | £0 | £180 | £380 |
| BEV — £45,000, 12,000 milesOriginal list price £45,000 · first registered 1 April 2027 · renewal 1 April 2028 · 12,000 miles | £200 | £0 | £360 | £560 |
| PHEV — £45,000, 12,000 milesOriginal list price £45,000 · first registered 1 April 2027 · renewal 1 April 2028 · 12,000 miles | £200 | £440 | £180 | £820 |
Calculated using the published assumptions checked on 14 October 2026. Read the calculator methodology and exclusions.
Evidence you can check
Official sources opened and checked on 14 October 2026. Examples and comparisons are our own calculations, rather than quotes for a vehicle.
- HM Treasury: eVED consultation response
- GOV.UK: vehicle tax rates
- HMRC: £50,000 electric car threshold
Government information is reused under the Open Government Licence v3.0. EV Tax Guide is independent of HMRC and DVLA. No independent professional tax review is claimed.
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