Cost of Charging to Rise

[Dodger]

VAT on charging to increase from 5% to 20%,

EV Charging Company Hikes UK Prices After VAT Rule Clarification

 

[EWD]

By the looks of things, only InstaVolt was charging 5% VAT. Most the other providers were already charging 20%.

 

[Alb]

I wasn't aware of the 1000kWh/month limit for home consumption.
If you were already a high consumer and you added daily car charging plus a heat pump for your central heating say, I wonder how easy it would be to surpass that limit?

 

[Jake]

I wasn't aware of the 1000kWh/month limit for home consumption.
If you were already a high consumer and you added daily car charging plus a heat pump for your central heating say, I wonder how easy it would be to surpass that limit?

Well spotted Joe. I wasn't aware of that limit for home consumption either. Just checked my bills and in the last 7 months I have breached the 1000kWh limit 4 times and only just below the other 3 months. We have 3 EVs so will have to keep an eye on that.

 

[micky]

I wasn't aware of the 1000kWh/month limit for home consumption.
If you were already a high consumer and you added daily car charging plus a heat pump for your central heating say, I wonder how easy it would be to surpass that limit?

well as the saying goes you learn somethink new every day i not noticed the 1000kwh limit the wife does the bills and never thought about the vat rating..

 

[Lovemyev]

well as the saying goes you learn somethink new every day i not noticed the 1000kwh limit the wife does the bills and never thought about the vat rating..

I guess this tax increase of using over 1000kwh’s goes some way to answer the question asked by some folks :-
“With people switching to electric cars, how is the government going to regain the lost revenue / tax from the sale of fossil fuel ?”.
Well, here is first part of the answer THAT question ! ?.
Doesn’t take the buggers long to jump onto the band wagon, does it.

 

[Kithmo]

1 Megawatt home use you guys are destroying the planet.

Seriously though, the government are going to have to increase this limit if they want people to move from gas heating and cooking to electric.

 

[Alb]

As I mentioned above, we are also being encouraged to adopt heat pump technology for domestic heating so if you went for that together with one or more EVs I'd have thought it quite feasible that 1000kWh/month could be breached.

 

[pjmuk]

I've checked on the gov website, and the 1000KW is only applicable for de minimis supply. Home usage is set at 5%. Fuel and power (VAT Notice 701/19).

 

[Alb]

Thanks for that reference
It's quite interesting to see the source but it just appears to reiterate the original assertion that 1000kWh/month or 33kWh/day is the (de minimis) domestic limit.
Even more intriguing is section 5.6 which seems to be talking about supplies for battery charging being standard rated!

 

[Dave53]

Thanks for that reference
It's quite interesting to see the source but it just appears to reiterate the original assertion that 1000kWh/month or 33kWh/day is the (de minimis) domestic limit.
Even more intriguing is section 5.6 which seems to be talking about supplies for battery charging being standard rated!

Think if you give it another read, the vat rate will be standard for supplying the battery sale or hire (just like when you buy a gas cylinder you pay full vat on that) to use to supply electricity, not to charge your own battery, same with the generator if someone supplied a generator for hire then vat would be supplied as standard vat on the equipment, most of these rules are set to close loopholes to stop the abuse of the vat system.

 

[Bazzer44]

Well spotted Joe. I wasn't aware of that limit for home consumption either. Just checked my bills and in the last 7 months I have breached the 1000kWh limit 4 times and only just below the other 3 months. We have 3 EVs so will have to keep an eye on that.

Arnt there any free chargers round your way?

 

[Jake]

Arnt there any free chargers round your way?

Not that convenient. 1 vehicle needs around 25kWh almost every day and at varying hours. Another gets a free top-up once a week shopping. Mine is Rapid charged with occasional charges at home to maintain battery balance.

 

[Bazzer44]

We are very lucky in West Yorkshire in tha respect
But you do have a lovely coastline