VAT is only part of EV charging affordability equation

The Charge Scheme’s Matt Waller wants to help drivers save money

For too long, drivers without a driveway have been charged four times the VAT rate of those who can plug in at home. 

HMRC has announced it will appeal a court ruling on VAT charged on public EV chargers. The Charge Scheme has already reduced charging costs by 15% in line with the court’s ruling in February, and has this to say about the latest announcement.

However, VAT is only one part of the affordability picture. Public charging can still cost significantly more than home charging and millions of people who rent or live in flats face structural barriers to switching that go beyond tax. 

We wanted our customers to feel the difference immediately, so we have already reduced the cost of charging by 15% after applying the 5% reduced VAT rate to qualifying supplies. 

For fleet managers, it means lower running costs across their EV fleet with no administrative change required. 

For employees already driving an EV through a salary sacrifice scheme, cheaper workplace and home charging compounds the tax savings they are already making, reducing the total cost of EV ownership further still.

A 15% reduction in charging costs is meaningful for employees who have taken on a charging benefit through their employer. Combined with the income tax and National Insurance savings that salary sacrifice already delivers, this makes the financial case for switching to an EV stronger than it has ever been.

Matt Waller is general manager of The Charge Scheme

The Charge Scheme is a salary sacrifice home and workplace EV charging benefit operated by Net Zero Benefits. It enables employees to access a home or workplace charger through their employer, reducing costs through income tax and National Insurance savings.