EV drivers save on home charging as VAT on energy bills cut to 0%
VAT cuts to make it cheaper to charge your EV
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Reduced VAT on energy bills from October 2026 means it’ll be cheaper to charge an electric car at home across the UK.
The UK government has removed VAT from energy bills, down from the previous 5% rate. This covers electricity only – gas bills are not included.
This will run until March 31 2027, and could save the household up to £45 per year on average.
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How will this impact electric car charging?
You no longer have to pay VAT on your electricity bill (it was previously 5%), so you’ll save on charging your car at home.
The VAT cuts only apply to household tariffs, so you will still have to pay the current 20% rate when charging at a public point.
How do I get the energy bill discount?
You don’t need to do anything – the VAT won’t be added to your bill as it has been previously.
This includes fixed energy tariffs where you have previously locked in your rate.
If you use a pre-payment metre, VAT will no longer be applied when you top up.
Gas isn’t included, so you’ll still have VAT applied to the gas portion of your bill if you’re on a dual tariff.
Electric charging savings
Electric cars are cheaper to ‘fuel’ on average than any petrol or diesel car, and these VAT cuts mean you can make further savings.
Ready to make the switch? Browse our range of new electric cars and used electric cars.
