Changing tax rules for electric and plug-in hybrid vehicles risk adding a “layer of complexity” for fleet managers, an industry expert has warned.
Tom Rowlands, managing director for global EV solutions at Corpay, Allstar’s parent company, says that “the practical reality for business is becoming more complex” as a result of the changes.
Rowlands highlights that from April 2028 EV drivers will have to pay a new ‘eVED’ tax of 3p per mile, with plug-in hybrids attracting a 1.5p rate.
He also notes that the 100% first-year capital allowance for EVs and chargepoints is only confirmed to run until spring 2027.
This landscape, Rowlands says, creates a “lack of long-term visibility” for businesses that “makes planning more difficult than it needs to be”.
“The next stage of electrification has to be about operational simplicity. Clearer policy, practical administration and greater certainty over future costs will help fleets make the transition with confidence rather than adding another layer of complexity to an already significant investment decision.”
