From 1st April, electric vehicles (EVs) will no longer be exempt from Vehicle Excise Duty (VED), adding another layer of cost pressure to fleet operators already navigating the complex and expensive shift to electric.
While a £195 tax per vehicle may seem negligible for an individual driver, for large fleets, the impact is substantial. A company operating 1,400 EVs will see over £250,000 added to annual expenses, a hit that cannot be ignored.
This new tax comes at a time when fleet managers are already dealing with rising wage bills, employer National Insurance contributions, and the broader economic pressures of electrification. While sustainability remains a priority, businesses must now find alternative ways to offset costs without compromising on emissions targets or operational efficiency.
One key area for saving lies in smarter charging strategies. Unpredictable charging expenses can quickly derail budgets, making it critical to adopt a structured approach.
This is where smarter systems are vital.
With fleet EV users charging their vehicles at home, in the depot, and on public chargers, inconsistency in cost, data, and reimbursement can quickly spiral into inefficiency.
A centralised platform can help put the brakes on runaway costs, reducing waste, tracking real-time usage, and automating home charging reimbursements – turning unpredictable expenses into manageable, transparent ones.
Managing mixed fleets is another challenge. With petrol, diesel and electric vehicles still coexisting, platforms that consolidate charging, mileage, and reimbursement data into one view are essential to maintain oversight and control.
The VED change is a clear signal that cost pressures are accelerating.
However, with the right tools – those that manage energy use holistically and offer real-time monitoring and control of charging infrastructure performance – fleet operators can stay ahead of rising costs and keep sustainability goals on track.
Russell Olive is UK director at vaylens
