The UK government’s proposed pay-per-mile tax for electric vehicles is facing scrutiny amid concerns that motorists could use mileage blocking devices to evade charges.
These gadgets, which are legally available for purchase and cost as little as £200, can obscure accurate road usage data, undermining efforts to generate revenue and offset declining fuel duty receipts.
The issue has sparked debate over the effectiveness of upcoming tax reforms and the adequacy of legislation to address emerging forms of tax avoidance within the electric mobility sector.
Labour plans new electric vehicle tax
Labour has proposed a pay-per-mile taxation system for electric and plug-in hybrid vehicles, scheduled to take effect from 2028. Under the plan, drivers of fully electric vehicles would be charged 3p per mile, while those with plug-in hybrids would pay 1.5p per mile.
These measures are part of a broader fiscal strategy to counterbalance losses from reduced petrol and diesel car use.
Chancellor Rachel Reeves has emphasised the need to update vehicle taxation in light of evolving motoring habits. Since April 2023, electric vehicles have already been subject to standard vehicle excise duties, extending to a wider group of motorists.
Rise of mileage blocker devices
Mileage blocker devices, which inhibit the recording of distance travelled, have become increasingly prevalent in online marketplaces. Priced between £200 and £900, these devices are marketed for legitimate purposes such as vehicle testing and development off public roads.
However, technical adaptations have made them compatible with the latest electric and hybrid models from major manufacturers, including Volkswagen and several Chinese brands. Data from suppliers and industry sources indicates that hundreds of these devices are installed in UK vehicles each month.
According to motoring publication Autocar, between 500 and 800 installations occur monthly, with a portion fitted to vehicles used by tradespeople.
Legality and availability of mileage blockers
While mileage blockers are legal to sell and own in certain contexts, their use on public roads is strictly prohibited.
Despite these regulations, there are indications that some drivers use the technology to avoid charges linked to mileage, including both end-of-lease penalties and anticipated taxation measures.
Websites retailing these devices often describe them as “untraceable” and capable of altering or slowing mileage accumulation on a vehicle’s odometer. This raises concerns over compliance and the potential scale of fraudulent activity as new tax policies are rolled out.
Tax policy prompts concerns over evasion
Industry observers warn that additional taxation on electric and hybrid vehicles could inadvertently drive interest in techniques for avoiding road usage charges.
Edmund King, president of the Automobile Association, highlighted the possibility that more drivers may seek to bypass payment through mileage tampering as taxes increase. King said,
“The upcoming taxes for drivers of EV and hybrid vehicles may well encourage more people to look at this kind of illegal activity.”
He further noted that while legitimate cases exist such as after an accident damages a speedometer—the widespread use of blockers for tax evasion presents a significant challenge.
Industry response and calls for action
Motoring organisations have called for strengthened legislation to address the issue of odometer manipulation. King drew comparisons with historic efforts to curb abuse of number plates to avoid other motoring charges, stating,
“This is a similar area where the law needs to be tightened to reflect the new tactics criminals are adopting.”
These calls echo previous legal reforms that targeted companies and individuals exploiting regulatory loopholes to avoid fees related to parking and congestion.
Final Summary
The emergence of mileage blocker devices presents a challenge to the UK government’s proposed pay-per-mile tax for electric and hybrid vehicle users.
As policymakers seek to recover lost fuel duty revenue and adapt taxation in response to rising electric vehicle adoption, concerns remain over the adequacy of current laws to prevent odometer tampering and tax evasion.
Motoring organisations and public officials alike have called for swift action to address these risks. The issue highlights the need for continual regulatory updates to keep pace with technological advancements. For those looking to stay informed on evolving transport policies and tax reforms, the Pie app remains a useful resource.
