What Is Pay Per Mile Tax in the UK? | Road Pricing & Vehicle Tax Reform Explained 2025-26 | PTA

Описание: The UK government is exploring a new Pay Per Mile Tax system to replace traditional Fuel Duty and Vehicle Excise Duty (VED) — but what does it really mean for drivers? In this detailed video, PTA (Pro Tax Accountant) explains what Pay Per Mile Tax is, how it could affect motorists, and why it’s becoming one of the most talked-about topics in UK tax reform for 2025 and beyond.

As more drivers switch to electric vehicles (EVs), the Treasury faces a sharp drop in fuel tax revenue. The proposed Pay Per Mile system aims to create a fair, sustainable way to fund UK roads while ensuring that both petrol and electric car drivers contribute equally. But many are asking: Will it make driving more expensive? and How will HMRC track mileage?

✅ In This Video, You’ll Learn:

What the Pay Per Mile Tax proposal actually means

Why the UK government is considering replacing fuel duty and road tax

How mileage-based taxation could work for electric and petrol vehicles

What technologies might be used to track distance travelled

How this change would affect company car drivers and self-employed motorists

The potential Pay Per Mile rates being discussed for 2025/26

How this reform could align with Net Zero goals and reduced emissions

Whether Pay Per Mile Tax will replace the ULEZ and congestion charges

Privacy, fairness, and enforcement issues around digital road pricing

How drivers can start preparing for these changes now

🚗 Example:
Under a Pay Per Mile Tax system, instead of paying annual road tax or fuel duty, drivers could be charged a few pence for each mile travelled. For example, if the rate were 5p per mile, a driver covering 10,000 miles per year would pay £500 — potentially replacing existing taxes. The goal is to make the system fairer while maintaining vital funding for UK roads.

📈 Key Context for 2025/26:

The UK loses around £35 billion annually in fuel duty due to the rise of electric vehicles.

The Office for Budget Responsibility (OBR) and Department for Transport (DfT) are reviewing models for a national road pricing scheme.

Trials and consultations are ongoing to assess public opinion, digital tracking feasibility, and environmental impact.

The system could be introduced gradually by late 2026 or early 2027, once infrastructure is ready.

💼 Expert Help from PTA (Pro Tax Accountant):
At Pro Tax Accountant, we stay ahead of every major UK tax reform — from vehicle taxation to personal and business tax changes. Whether you’re a private driver, fleet owner, or company director, our experts can help you plan for upcoming tax adjustments and stay compliant with HMRC requirements.

📞 Contact Pro Tax Accountant for professional tax advice:
WhatsApp / Phone: 07985689912
Email: [email protected]

Website: www.protaxaccountant.co.uk

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⚠️ Disclaimer:
This video is for general informational purposes only and does not constitute financial or legal advice. Tax laws and government policies may change. Always consult a qualified accountant or tax adviser before making financial decisions. PTA (Pro Tax Accountant) and its representatives accept no liability for any loss arising from reliance on the information contained in this video.

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