MOT test centres will be told to spy on drivers' mileage to calculate new Electric Vehicle Excise Duty (VED) fees under Rachel Reeves' new pay-per-mile plan. HM Treasury has issued more details around how the new electric pay-per-mile tax will be calculated, with MOT test centres playing a vital role.

Mileage is already looked at during MOT tests, with details of how far drivers have travelled uploaded to the test certificate for all to see. However, garages will now go one step further and check that drivers have paid the correct tax on cars at the time of their annual inspection. There has been much debate about how the Chancellor's flagship EV policy would work since her announcement of the new scheme on Wednesday.

However, a new consultation on the new eVED charges revealed the crucial role MOT centres will now play, admitting mechanics are "well placed" to conduct the assessments.

The Treasury explained: "Alongside paying their VED each year, under eVED motorists will estimate their mileage for the year ahead, pay an upfront charge based on their estimate or spread their payment across the year, and then submit their actual mileage at the end of the year to trigger a reconciliation.

"Motorists will have their mileage checked annually, typically during their MOT as is already the case, or for new cars, around their first and second registration anniversary.

They added: "The government considers MOT test centres to be well placed to be these accredited providers. They already have facility to record mileages and are trusted partners of Government."

There was some confusion around what would happen to brand new electric cars, with MOT tests usually not required until the third year of a car's lifespan. However, the Treasury has proposed that EV owners will be required to attend a specific "mileage check" once a year to calculate costs.

The Treasury explained: "Cars under three years old are not currently required to have an annual MOT. The government currently intends for these cars to attend an additional mileage check at an accredited provider around their first and second anniversary, but welcomes views on whether these additional checks should be required."

Ms Reeves confirmed a 3p per mile fee for battery electric cars and a 1.5p per mile charge for hybrids would come into effect from 2028.

Early estimates have suggested the fee could set drivers back around £300 per year, with new rates paid on top of Vehicle Excise Duty fees. Under the new scheme, travelling between London and Edinburgh will set drivers back by around £12.