A Quiet Change That Saves You Money
From 1 October 2026 to 31 March 2027, VAT on household electricity drops from 5% to 0%. If you charge your EV at home, the electricity going into your car is now VAT-free. It applies in England, Scotland and Wales; Northern Ireland stays at 5%.
You don't need to do anything to get it. Your supplier applies it to your bill automatically.
Public Charging Still Pays 20%
Here's the catch: public chargers still carry VAT at the full 20% rate. That gap has been there for years, but it's now wider than ever. A driver without a home charger pays 20% VAT on every public session. A driver with one pays nothing at home.
What It Saves Over a Year
Here's a rough picture for a typical UK driver:
- Around 10,000 miles a year
- Roughly 4 miles per kWh
- About 2,500 kWh of home charging a year
On a standard tariff of around 24p per kWh, that's £600 of electricity a year, so losing the 5% VAT knocks around £28 off. That's in line with the £27 or so per car most estimates quote.
The bigger saving is still the gap between home and public charging. Home rates, especially on overnight EV tariffs, are a fraction of public rapid charging, which often costs 65p to 85p per kWh. The VAT cut makes the home side cheaper still.
What About the Grant?
If you live in a flat or rent your home, you may also qualify for the OZEV EV chargepoint grant, worth up to £500 off your charger and installation until 31 March 2027. Homeowners in houses with their own driveway aren't eligible for the grant, but the VAT cut applies to everyone charging at home. Check the grant details on GOV.UK.
The Right Charger Still Matters
A VAT saving is welcome, but the charger you choose decides your charging speed, your smart scheduling options and how well it works with cheap overnight tariffs. Browse our home charger guide to find the right fit for your car and home.
Install Now, Save From Day One
The 0% rate runs until 31 March 2027, and there's no promise it'll be extended. If you've been weighing up a home charger, the sooner it's on the wall, the more of the VAT-free window you'll use.
