EV charging VAT (20%) announcement

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londiniumperson
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Post by londiniumperson »

This week HMRC stated that the rate of VAT that should be applied to all forms of public EV charging should be 20%

I can understand VAT being applied from a logical viewpoint because it's currently applied to Petrol & Diesel, however it contradicts their plans to encourage the sale & use of EV's.
I suppose this is the typical UK government's mis-handling of every single policy, it almost seems like Honda employed the same people to develop the MyHonda+ app.
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MattHero
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Post by MattHero »

It's especially aggravating, given it will hurt those without home charging the most, who are much more likely to be urban or extra urban based, where the vehicles work most productively. It'll generate a pitifully small amount of additional revenue, but be another factor to brake potential new adoption.
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bogga
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Post by bogga »

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

Does this mean that companies will take away free charging in work car parks?
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londiniumperson
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Post by londiniumperson »

bogga wrote: Fri May 28, 2021 7:21 pm https://www.gov.uk/government/publicati ... c-vehicles

Does this mean that companies will take away free charging in work car parks?
There's no such thing as free charging in work car parks, the employee has either pay for electricity used at the full cost to the employer or be taxed as a benefit in kind at their marginal rate otherwise they will be evading tax and the penalty for that can be severe.
2022 Advance in Crystal Black Pearl on 17's - 08/2020-Current
2015 VW Tiguan (Pure White) - 04/2018-Current
1991 Honda Beat PP1 (Festival Red) - 11/2022-Current
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bogga
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Post by bogga »

It's OK, there is an exemption until 2024
https://www.gov.uk/government/publicati ... d-vehicles
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londiniumperson
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Post by londiniumperson »

bogga wrote: Sat May 29, 2021 5:02 am It's OK, there is an exemption until 2024
https://www.gov.uk/government/publicati ... d-vehicles
Thank you, I wasn't aware of this, it's a shame that it's highly unlikely that my employer will provide charge points at my workplace, even though they've just announced that they have joined the United Nations race to Zero campaign as well as a 'move to net zero greenhouse gases across operations by 2030 & their value chain by 2050'.

I notice that this also applies where an employee is passenger and might work elsewhere (see https://www.gov.uk/hmrc-internal-manual ... l/eim01035)
Example
Mr and Mrs X work for different employers in a similar location and so take turns to drive each other to work. Mr X’s employer spends £6,000 to install charging points in their office car park.
Mrs X’s employer does not provide charging points at her workplace. When Mr X makes use of the charging facilities at his office’s car park, the benefit of the electricity used, the use of the charging point and any connected services are exempt.
On days when Mrs X drives them both, the car is parked at Mr X’s office.
The use of the charging facilities remains exempt as Mr X is a passenger.
Last edited by londiniumperson on Sat May 29, 2021 11:56 am, edited 1 time in total.
2022 Advance in Crystal Black Pearl on 17's - 08/2020-Current
2015 VW Tiguan (Pure White) - 04/2018-Current
1991 Honda Beat PP1 (Festival Red) - 11/2022-Current
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Highanddry
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Post by Highanddry »

At least you avoid paying for the renewables and development fuel “taxation” that your government is putting on fossil fuel, which can only go up further from this point…
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