PHEV Pence per mile

[volturb40]

This is my personal opinion, I'm sure others might disagree, but I recently bought a PHEV nothing special just a Toyota Chr.

I'm now paying a VED over 12 months of £651, this car does a maximum EV mileage of about 35 miles on a good summers day, then the Petrol engine cuts in.

So at this moment I'm paying massive VED, VAT on electric to charge it, tax on petrol to fuel it and now they want to charge pence per mile from 2028 it's insane, guaranteed the resale value will have taken a massive hit also.

I hope they make a u turn on this or cut the VED to £195, what do other owners think?

[RowanF]

25 page thread on the topic: https://www.pistonheads.com/gassing/topic.asp?h=0&...

[volturb40]

RowanF said:

25 page thread on the topic: https://www.pistonheads.com/gassing/topic.asp?h=0&...

Yes thanks for your reply, I have been following that thread but its more on EV cars not PHEV.

[RotorRambler]

Is the high VED the expensive car tax @ £40k+ ?
Same for everyone if so..
At least only 1.5p a mile tax from 2028. £150 for 10k miles. Peanuts really.
So if you can run mostly on battery (my wife does 90% of her mileage in electric local stuff)
Better than paying 7p a mile tax burning petrol!

[samoht]

RotorRambler said:

Is the high VED the expensive car tax @ £40k+ ?
Same for everyone if so..
At least only 1.5p a mile tax from 2028. £150 for 10k miles. Peanuts really.
So if you can run mostly on battery (my wife does 90% of her mileage in electric local stuff)
Better than paying 7p a mile tax burning petrol!

"Punitive" Band M road tax on an old V8 like my previous AMG: £760 pa
Road tax on OP's modern, minimally polluting petrol hybrid: £195 + £425 expensive car supplement + £150 per-mile charge (for 10k/yr) = £770 pa

Joined-up government? Not quite.

[pteron]

samoht said:

RotorRambler said:

Is the high VED the expensive car tax @ £40k+ ?
Same for everyone if so..
At least only 1.5p a mile tax from 2028. £150 for 10k miles. Peanuts really.
So if you can run mostly on battery (my wife does 90% of her mileage in electric local stuff)
Better than paying 7p a mile tax burning petrol!

"Punitive" Band M road tax on an old V8 like my previous AMG: £760 pa
Road tax on OP's modern, minimally polluting petrol hybrid: £195 + £425 expensive car supplement + £150 per-mile charge (for 10k/yr) = £770 pa

Joined-up government? Not quite.

But if you look at it from the angle of "we need to raise this amount of money, where can we do that", it's easier to comprehend that this is just another tax.

I don't think anyone in government actually believes they can justify the taxes in terms of joined-up government, but I doubt they'll admit as much.

[Zetec-S]

Jesus, you can pay over £40k for a Toyota CHR...

(obviously nobody "pays" that amount, but even so it's a pretty bonkers list price...)

[FHCNICK]

pteron said:

But if you look at it from the angle of "we need to raise this amount of money, where can we do that", it's easier to comprehend that this is just another tax.

I don't think anyone in government actually believes they can justify the taxes in terms of joined-up government, but I doubt they'll admit as much.

Exactly, they by now will know how much revenue has been lost from fuel duty and have cobbled something together to fill the gap and keep filling the gap as fuel duty continues to realise less revenue.

I guess the PHEV aspect left them with a bit of a headache and is probably less fair in as much as some owners doing predominantly short journeys will be quids in against BEV whereas others will lose out financially.

I would imagine that the PHEV platform will lose some appeal for a lot of people. You never know the government might actually study the impact and redefine the pence per mile accordingly but I doubt it as they probably think the PHEV platform was only ever going to be a short shelf life interim solution.

Fuel duty will obviously increase and that may well lead to a quickening of the change to BEV but all lost revenue will need to be regained and this new system is the 1st stab at it, if it works they will keep it and if not then I guess VED will take up the slack.

[RotorRambler]

samoht said:

RotorRambler said:

Is the high VED the expensive car tax @ £40k+ ?
Same for everyone if so..
At least only 1.5p a mile tax from 2028. £150 for 10k miles. Peanuts really.
So if you can run mostly on battery (my wife does 90% of her mileage in electric local stuff)
Better than paying 7p a mile tax burning petrol!

"Punitive" Band M road tax on an old V8 like my previous AMG: £760 pa
Road tax on OP's modern, minimally polluting petrol hybrid: £195 + £425 expensive car supplement + £150 per-mile charge (for 10k/yr) = £770 pa

Joined-up government? Not quite.

The £425 luxury car tax is the killer.
Applies to any car…
It’s being raised on EVs though, a nail in the coffin to £40k + phevs!

“as of 1 April 2026 — the ECS threshold for zero-emission cars will be raised from £40,000 → £50,000”

[Phateuk]

RotorRambler said:

samoht said:

RotorRambler said:

Is the high VED the expensive car tax @ £40k+ ?
Same for everyone if so..
At least only 1.5p a mile tax from 2028. £150 for 10k miles. Peanuts really.
So if you can run mostly on battery (my wife does 90% of her mileage in electric local stuff)
Better than paying 7p a mile tax burning petrol!

"Punitive" Band M road tax on an old V8 like my previous AMG: £760 pa
Road tax on OP's modern, minimally polluting petrol hybrid: £195 + £425 expensive car supplement + £150 per-mile charge (for 10k/yr) = £770 pa

Joined-up government? Not quite.

The £425 luxury car tax is the killer.
Applies to any car
It s being raised on EVs though, a nail in the coffin to £40k + phevs!

as of 1 April 2026 the ECS threshold for zero-emission cars will be raised from £40,000 ? £50,000

I think the 5 year "luxury" tax is a great idea, the old system forced older cars to become pretty much scrap that fell into the higher bands as the car got older, now you can have any car you like 5+ years old for just £190/year.

I moved on my E92 M3 largely because of the ever increasing annual tax for the little use i got out of it, it was circa £500 when I purchased and nearly £800 when I sold :O Hard enough to justify for a reasonable special car, but a 2.0 mondeo or something that would be a perfectly fine shed for someone... not so much!

[Ankh87]

It's looking like the Gov don't know how they are going to implement or police PPP at the moment. Reeves kept harping on about MOTs even though new cars don't have them.
So going off this information, the Gov will make the MOT tester input a mileage as usual and then you'll get your bill for PPP.
As not everyone has their VED on or around the same month as they bought their car.

Having a plug in hybrid is now game over. You're getting bent over having to spend more even more and barely getting a better mpg. Totally killed off used prices now.

[MrTrilby]

Ankh87 said:

Having a plug in hybrid is now game over. You're getting bent over having to spend more even more and barely getting a better mpg. Totally killed off used prices now.

This. It’s pretty shabby for existing owners of PHEVs who couldn’t possibly foresee or anticipate the impact.
Likely we won’t bother selling it ever now if the resale values are significantly impacted. And I’m sure they will be given we now get to pay 1.5p a mile more than an ICE for every single mile we do.

Which is bonkers. Even if we charged and used our PHEV fully every day, which we don’t, the most we can is around 12k miles a year. It does nearly double that mileage on petrol.

[Tractor Driver]

There’s probably still a place for the newer ‘long range’ PHEVs (e.g. the VAG offerings with ~85 miles electric range) if your use case means that you can charge at home overnight at 7p/kWh and your typical daily drive is no more than the electric range.

Bit of a farce carting an engine round with you all the time if you barely use it though…

[Mahalo]

Yet another post on piston heads where posters seem to be incapable of critical thinking or simple calculations. The PHEV mileage rate is 1.5p per mile so 50% of the BEV mileage rate. Given that the average daily mileage of Uk drivers is approx 19 miles per day and that most modern PHEVs will easily do 19 miles per day on electric then it does not take a genius to work out that perhaps a PHEV makes sense if you can do your normal daly mileage in EV mode.

[RotorRambler]

Mahalo said:

Yet another post on piston heads where posters seem to be incapable of critical thinking or simple calculations. The PHEV mileage rate is 1.5p per mile so 50% of the BEV mileage rate. Given that the average daily mileage of Uk drivers is approx 19 miles per day and that most modern PHEVs will easily do 19 miles per day on electric then it does not take a genius to work out that perhaps a PHEV makes sense if you can do your normal daly mileage in EV mode.

My wife’s phev has been to the petrol station twice this year, under £100
The rest on Electric @ 7p kwh
I have a BEV
Hers plugs into an outside 3 pin socket, so both can be charged at the same time.
It wasn’t a £40k+ car, so ‘only..’ £195 car tax.
Battery and it’s drivetrain has a 10 year warranty.
She wasn’t ready for BEV, it kind of compliments mine nicely.
It’s quite a fun thing tbh, floor it and the engine kicks in too.
Very cheap to run in her use case & it’s not purely about running costs, usually zero emissions..