Octopus Electric Vehicles has pledged to cover the new pay-per-mile tax for all existing customers – meaning no extra charges for drivers who have already made the switch to electric.

The tax, announced in the Autumn Budget and currently under consultation, will introduce a 3p per mile charge for electric vehicles that’s planned to come into effect in April 2028.

Customers currently on an Octopus EV lease, who completed an order by 28 November, will be fully protected from the new charge until the end of their lease.

Octopus EV says nearly 20,000 drivers are set to benefit, ensuring no surprise costs undermine their move to cleaner transport.

The new tax is designed to replace fuel duty revenue as more drivers move away from petrol and diesel – and Octopus Electric Vehicles said EV drivers should contribute to road upkeep, but “fairly and at the right time”.

Gurjeet Grewal, chief executive, continued: “Until the details are finalised, we want our existing customers to know they won’t be affected. They made the switch early, and we’re rewarding that commitment by absorbing the new tax and keeping their costs steady.”

Octopus EV also confirmed it is closely monitoring the Government’s consultation process on how the tax will work in practice, with a strong focus on keeping things simple for drivers.

The company has committed to ensuring that any new admin caused by the tax changes will be kept to a minimum, using its technology and operational systems.

“Our customers shouldn’t have to wade through new forms or fiddle with extra mileage reports,” added Grewal. “If there’s admin to be done, we’ll make it as easy as possible. We’ll be contributing to the Government’s consultations on their new tax rules to help ensure they’re fair and easy for drivers to navigate.”