Venson urges policy change to reduce the rate to 5% in line with home charging costs to boost fleet EV adoption.

Simon Staton, client management director, Venson Automotive Solutions

New research by Venson Automotive Solutions reveals that 61% of motorists back proposals for the 20% VAT rate on electric vehicle (EV) public charging to be eliminated.

If those plans are blocked, 57% would like to see a standardised, lower VAT rate introduced. Currently, there is a significant disparity between public and private charging VAT, with home charging sitting at 5%.

The vote comes as MPs prepare to debate proposed changes to VAT rates on EV charging, with a private member’s bill seeking to eliminate additional charges for public charging points.

In addition to the current 20% VAT cost on public charging, electricity supply charges vary hugely too. According to Kerbo Charge, when comparing an off-peak home charging rate of 10p kWh vs a public charging station at 55p kWh there is a 450% increase in cost. The difference grows significantly when comparing home charging to a rapid public charging station, with a difference of 690%.

As 1 April 2025 looms, registered keepers of EV, zero or low emission cars, vans and motorcycles are bracing themselves for an increase in ownership costs, as they will have to pay the same Vehicle Excise Duty (VED) as registered keepers of petrol and diesel vehicles. The rate will increase from £190 to £195. In addition, newly registered EVs will face first-year VED rates of £10. Furthermore, the £425 annual surcharge for vehicles costing over £40,000, including many EVs, remains in place. These changes will apply to both new and existing vehicles and will hit company car and domestic drivers, creating another financial barrier to EV adoption.

Alongside cost concerns, 76% of drivers Venson surveyed said they don’t believe there is enough access to on-street residential charging – a constant obstacle to EV adoption that has yet to be overcome by local government and commercial charging providers.

Simon Staton, client management director of Venson Automotive Solutions comments: “Businesses are eager to see MPs pass the proposed bill to reduce VAT on public charging. A standardised approach to VAT for home and public charging will enable businesses and individuals to make a clearer assessment of the cost of owning an EV, crucial in a constantly challenging economic climate.

“We also look forward to decisions being made following the government’s recent consultation on zero emission vans. Actions that help to remove barriers to EV adoption, particularly for 4.25-tonne vehicles, will all help to support organisations transitioning to a greener fleet.”