Charging your EV at home just got a tax cut, but you're still paying the full whack on a public charger. Why's there such a big gap?

The government’s latest cost of living measure – dropping VAT on home electricity bills to 0% – has come into effect today and EV experts and charge providers alike are calling on the government to close the widening gap between home and public charging. 

Research conducted by Fastned has found that more than two-thirds of people think the gap between those with driveways and those who rely on public charging is unfair, and a majority would support the government dropping public charging VAT to 0%. 

A tax tribunal ruling earlier this year challenged the Treasury on whether it was allowed to charge 20% VAT on public charge points, but the government has appealed the decision and a final position is yet to be reached. 

Electrifying founder Ginny Buckley has teamed up with Fastned to raise awareness of the charging gap: “By cutting VAT on electricity for EV owners who can charge at home, while continuing to charge 20% VAT on public charging, the government is driving the transition to electric with one foot on the accelerator and the other on the brake – and any driver will tell you that you don’t get very far doing that.”

Fastned’s UK boss Tom Hurst says that an electric car “should be an option for everyone” whether they have a driveway or not, which is why the company is “calling on the government to level the playing field by bringing VAT on public charging down to zero.”

The company is offering its customers a £25 credit – the cost of its average charge – with the code VAT2026 in the Fastned app that’s valid until the end of 2 October and valid for three days after it’s been redeemed. 

Charge network Gridserve is also highlighting the gap between driveway and public charging – it’s knocking 20% off its prices across the network just for today to show what a difference the move would make. It says that it has promised to pass a potential VAT reduction straight on to its customers. Company boss Daniel Kunkel told me in July that the gap between home and public charging "doesn't feel right". 

The trade association that represents the UK’s providers, ChargeUK, has also written a letter to prime minister Andy Burnham asking him to end the divide – hopefully it’ll get to Downing Street today, you can’t trust the post anymore – and CEO Shane Brennan has called for charging to be “fair and accessible to all”.