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HMRC Confirms 20% VAT for Public Car Charging

Posted: Thu Jun 17, 2021 7:29 pm
by nowty
This seems to have missed everyone by, what with the forum debacles. It was announced almost a month ago and there are several stories about it in the press.

I got an email the other day from Shell who seem to now own a number of public charging networks, that some of their tariffs are increasing because of a recent clarification by HMRC on the charging of the full VAT rate for public chargers. Ionity chargers are going to be an eye watering 72p / kWh. :o

It seems some networks were already charging 20% but several were only charging 5% VAT.

https://www.current-news.co.uk/news/hmr ... v-charging

https://www.taxi-point.co.uk/post/shock ... -on-petrol

https://www.gov.uk/government/publicati ... c-vehicles

Re: HMRC Confirms 20% VAT for Public Car Charging

Posted: Thu Jun 17, 2021 7:53 pm
by Stinsy
72p !

I thought 35p was exploitative! Tesco offer free AC charging (22kW for those that can take it) and 27p for DC charging, most other places near me are 27p too.

Re: HMRC Confirms 20% VAT for Public Car Charging

Posted: Thu Jun 17, 2021 10:12 pm
by Oliver90owner
Ionity chargers are going to be an eye watering 72p / kWh. :o


That makes charging at home about 1/10th the cost of their rates.🙂 At least for those that do not completely deplete their battery during the day (or have a smart charger using renewable energy,etc).

I get around 13-14 miles per litre of derv - which equates to about 10p/mile currently - so is far cheaper than “filling up” at ionity.

I would not be surprised if the government were soon to put on the equivalent of road fuel excise duty for electric ‘fuel’ at filling stations, etc as it becomes worthwhile to collect. Easy to do for DC charges delivered. I expect they are already formulating plans for extra tax revenue from motorists.

It would also encourage vehicles with larger batteries/range, of course....

Re: HMRC Confirms 20% VAT for Public Car Charging

Posted: Thu Jun 17, 2021 10:40 pm
by nowty
From the email I received, the prices are going to change between 1st and 8th July.

Apart from the insane Ionity prices, most of the other Shell chargers are going to be between 40p and 45p per kWh.

Oh, and I forget to mention there is also a 35p transaction charge for every time you plug in on top.

Re: HMRC Confirms 20% VAT for Public Car Charging

Posted: Fri Jun 18, 2021 10:22 am
by Mr Gus
In the early weeks & months since March my wife was often found charging for 30 mins at a nearby tesla fast charger (the fact that we have one is a big thing) & this novelty is from someone who already drove a leaf, however I have since weaned her train of thought, use sparingly charge at home wherever possible & get more back from the firm as a result, she see's that now thank goodness even though they were reimbursing her for pit-stops sans Tesla.

I am too long in the tooth to think that it is to encourage home solar, its the promised tax folk to the hilt that will now cause a problem for inner city driveless folks contemplating the change.

All of a sudden the shake up requires a do over of the fiscal savings with pollution & the planet back of the queue.
5% vat is acceptable 20% vat is a steaming t_rd of epic proportion at any stage of wider public EV uptake.
(especially as the second hand market is not exactly forecourts by the fistful of EV's at an affordable price)

Re: HMRC Confirms 20% VAT for Public Car Charging

Posted: Fri Jun 18, 2021 10:34 am
by Stinsy
The 20% VAT seems regressive.

The "wealthy" who own private driveways are able to charge at 5p (off peak) or 15p (peak) with 5% VAT. Whereas the "poor" who rely on a weekly DC fast-charge will have to pay 35-75p with 20% VAT.

Re: HMRC Confirms 20% VAT for Public Car Charging

Posted: Sun Jun 20, 2021 11:21 am
by spread-tee
VAT as designed to be regressive, it all helps the trickle up economy, that and the fact it is harder to evade. We could do with an entirely new tax system which could also do a lot of good towards modifying behaviour towards a green economy.

peed a rest

Re: HMRC Confirms 20% VAT for Public Car Charging

Posted: Sun Jun 20, 2021 11:58 am
by Stinsy
spread-tee wrote: Sun Jun 20, 2021 11:21 am VAT as designed to be regressive, it all helps the trickle up economy, that and the fact it is harder to evade. We could do with an entirely new tax system which could also do a lot of good towards modifying behaviour towards a green economy.

peed a rest
I agree! Have been harping on about this for ages to anyone who'll listen!

Here is my plan:

- Single flat rate of: income tax, corporation tax, and capital gains tax.
- Land value tax to encourage productive use of urban land.
- Tax rebate (UBI) given to every man/woman/child who has been physically in the country for 48weeks or more of each of the last 5 years. Premium rate paid to over-65s, and those suffering permanent physical disability.
- Abolish all welfare. (Replaced by UBI (above)).

Re: HMRC Confirms 20% VAT for Public Car Charging

Posted: Sun Jun 20, 2021 1:12 pm
by dan_b
Just checked back through a few invoices from public charge points - Ubitricity and Osprey - and they both charged VAT at 20% - didn't realise others werent?

Re: HMRC Confirms 20% VAT for Public Car Charging

Posted: Sun Jun 20, 2021 1:53 pm
by nowty
Ubitricity is now owned by Shell but was not specifically mentioned on their price rise email, although there was a vague category of "Other Regular AC chargers" which are going to be 40p / kWh. I think Osprey are only partnered with Shell.

Some companies used a little known exemption called "de minimis" which allowed small amounts of electricity provision to be provided at 5% VAT.

The email was headed, "Updated VAT and new standard tariff in the UK", so the price rises next month could be more wider than just for the increases in VAT.