Rachel Reeves’ Autumn Statement has officially announced the expected 3p per mile for EV drivers tax, and 1.5p per mile for hybrid drivers from 2028.
In the past few weeks, there has been speculation that this new tax will be introduced, and it has caused concern for many EV drivers.
Electric vehicles have always benefitted from the lowest tax rates, with the UK Government aiming to encourage uptake. However, as the number of EVs on the road increases, a widening hole in HM Treasury’s car tax income has prompted law makers to address the situation.
One solution – since electricity is not taxed as a fuel in the same way as petrol or diesel – is for EV drivers to pay a set price per mile driven. This aims to combat the expected £30 billion gap in public finances by the end of the current government, but will consequently add around £250 per year to the average cost of running an EV.
Projections suggest that this new tax will raise approximately £1.4 billion annually by the start of the next decade, when a ban on new petrol and diesel cars is set to come in. Much will depend on how the proposed charging system is rolled out but, regardless of implementation, a 3p per mile EV tax still sees electric cars work out cheaper to run than petrol and diesel.
The Numbers Still Add Up
Our CEO, Lash Saranna, explains: “Working on the average mileage of an EV driver, even with pay per mile pricing, driving an electric car is still far more cost effective than petrol or diesel. Opting for the salary sacrifice route makes the comparison even wider. Indeed, depending on the tax rate of the employee and the model chosen, drivers could save more than £250 in a single month, compared to more conventional leasing options.”
Don’t Let Headlines Mislead You
Lash continues: “It’s important to note that, despite headlines spreading fear and uncertainty, once you run the numbers, it remains considerably cheaper to get behind the wheel of a new or used EV through salary sacrifice.”
The transition to electric is happening, and while the tax landscape is evolving, the financial case for EVs remains strong. Whether you’re looking to reduce your carbon footprint or simply save money on running costs, electric vehicles – particularly through salary sacrifice – continue to offer exceptional value.
See our handy table to show how much EV drivers will be paying from April 2028, based on annual milage.
Annual Milage
Annual EV Tax
Monthly Equivalent
8,000
£240
£20
10,000
£300
£25
12,000
£360
£30
As Featured In the BBC
Our co-founder Charnjit Saranna has been featured in the BBC news talking about the new pay-per-mile tax.
With the UK’s shift towards electric vehicles accelerating and electric car lease deals becoming increasingly attractive, one question keeps coming up: what’s the best electric car to lease?
The honest answer? There isn’t a single “best” EV for everyone. The right choice depends entirely on your needs, budget, driving habits, and lifestyle. But that doesn’t mean we can’t help you find the perfect match.
Why Lease an Electric Car?
Before diving into specific models, it’s worth understanding why leasing has become such a popular way to drive electric.
Unlike buying, leasing means you’re not locked into a depreciating asset. You get access to the latest technology, all-inclusive servicing, insurance, and breakdown cover – and when your term ends, you simply hand the keys back and upgrade to something newer.
It’s hassle-free, tax-efficient, and ideal for anyone who wants to drive a modern EV without the long-term commitment or upfront costs.
What Makes a Good Electric Car for Leasing?
When choosing an EV to lease, focus on these key factors:
Range: How far can you travel on a single charge? For most UK drivers, 200+ miles is plenty for daily use. If you regularly take longer trips, look for models offering 300+ miles.
Charging speed: Can the car rapid charge? This matters if you’re planning motorway journeys or don’t have home charging. Look for EVs that support 100kW+ charging speeds.
Running costs:Are electric cars better for the environment? Absolutely – and they’re cheaper to run too. No road tax, lower servicing costs, and significantly reduced “fuel” expenses all add up.
Practicality: Does it fit your lifestyle? Consider boot space, seating capacity, and interior tech. A compact city car won’t suit a family of five, and a large SUV might be overkill for solo commuters.
Benefit-in-Kind (BiK) tax: For company car drivers, this is crucial. Fully electric cars currently sit at just 3% BiK, making them incredibly tax-efficient compared to petrol or diesel alternatives.
Best Electric Cars to Lease This Year
Here’s a closer look at some standout models across different categories:
Best for Affordability: MG4
The MG4 has quickly become one of the UK’s most popular electric cars – and for good reason. It offers an impressive real-world range of up to 281 miles, rapid charging capability, and a spacious, modern interior, all at a price point that won’t break the bank.
For drivers who want a reliable, practical EV without paying premium prices, the MG4 is hard to beat. It’s perfect for commuters, small families, and anyone stepping into electric for the first time.
Best for Families: Kia EV9
If space is your priority, the Kia EV9 is a game-changer. This three-row, seven-seater SUV combines luxury, practicality, and an impressive range of up to 349 miles. With cutting-edge tech, a refined ride, and enough room for the whole family (plus luggage), it’s ideal for those who need a genuinely versatile vehicle.
Best for Performance: Tesla Model 3
Tesla remains the benchmark for electric performance and technology. The Model 3 offers blistering acceleration, a minimalist interior dominated by a central touchscreen, and access to Tesla’s expansive Supercharger network – one of the fastest and most reliable charging infrastructures in the UK.
With a range of up to 374 miles and over-the-air software updates that keep improving the car long after delivery, the Model 3 is perfect for tech-savvy drivers who want cutting-edge innovation.
Best for Luxury: Mercedes-Benz EQE
For those seeking premium comfort and refinement, the Mercedes-Benz EQE is a superb choice. It combines elegant design, a high-quality interior, advanced driver assistance systems, and a smooth, whisper-quiet ride.
With a range of around 394 miles and rapid charging capabilities, the EQE proves that going electric doesn’t mean compromising on luxury. It’s ideal for executives, long-distance commuters, and anyone who values comfort and prestige.
Best for City Driving: Mini Electric
Compact, stylish, and great fun to drive, the Mini Electric is perfectly suited to urban life. Its smaller battery means a range of around 145 miles – more than enough for city commutes and local errands – and its nippy handling makes navigating tight streets a breeze.
If you rarely venture beyond city limits and want something characterful and efficient, the Mini Electric is an excellent choice.
Best All-Rounder: Volkswagen ID.4
The VW ID.4 strikes a brilliant balance between price, range, space, and tech. With up to 326 miles of range, a roomy interior, and a comfortable driving experience, it ticks nearly every box for the average driver.
It’s not the flashiest or the fastest, but it’s dependable, practical, and easy to live with – which is exactly what most people need from an electric car.
How Does Leasing Work for Businesses?
For businesses looking to electrify their fleet, leasing offers a straightforward, cost-effective solution. Through EZOO’s business car leasing options, companies can access flexible terms starting from just three months, with fast delivery and fully inclusive pricing.
Many businesses are also exploring salary sacrifice schemes, which allow staff to drive brand-new EVs whilst saving significant amounts on tax and National Insurance.
Finding the Best EV for You
Ultimately, the best electric car to lease is the one that fits your life. Whether you prioritise affordability, space, performance, or luxury, there’s an EV out there that’s perfect for your needs.
With electric car lease deals through EZOO, you’ll get access to the UK’s widest range of electric vehicles, all-inclusive pricing, and expert support from start to finish. No upfront costs, no hidden fees – just a straightforward, hassle-free way to drive the latest electric cars.
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