[Bandit]

…..seeking to reduce VAT from 20% down to 5% was scheduled to have it’s second reading yesterday but as yet I can’t find any news. Does anyone else know?

Will be a decent saving on those long journeys if it gets enacted.

Topic

[trb10]

You’re assuming of course that the charge point operators will pass on that 15% reduction if it gets approved.  I would be very surprised if they did.

[Bandit]

trb10 wrote:

You’re assuming of course that the charge point operators will pass on that 15% reduction if it gets approved. I would be very surprised if they did.

It would have nothing to do with them.

[trb10]

Of course it does!  They can continue charging their current rates and just pocket the difference

[reluctantcripple]

The loss of fuel duty from transition to EV will be the biggest headache for UK Gov budgets. Therefore I imagine reluctance to cut VAT to 5% (especially as it is unlikely companies will pass that saving on without legislation). Reductions in electricity costs for charging will probably (in future) go hand-in-hand with road pricing.

blah, blah, blah

[DumfriesDik]

reluctantcripple wrote:

The loss of fuel duty from transition to EV will be the biggest headache for UK Gov budgets.

I was talking about this just yesterday. Couldn’t reach an agreement on how it might work and got a headache!!

Back to the OG’s question, I think they would be obliged to pass on the reduction.

Skoda Enyaq Race Blue

[Rich44]

It’s VAT they legally HAVE to.  If they don’t they’d be committing fraud by collecting a tax that wouldn’t exist.  Sure they could amend their cut so as to not collect its as VAT but there’s no way they’d risk it imagine the publicity.  the 2008 and 2020 VAT cuts weren’t completely passed on and some businesses used them to prop up profit margins, this time we’re only talking about one market so it’ll be watched carefully.  Unlike the other cuts which were to much wider sectors of industry

[LDC7080]

i cannot see them cutting VAT on public charging.  afterall the 2 certainties in life are death and taxes.   i would go as far as to say that VAT on home charging will increase to 20% first.   companies already have the tech to know how much juice you are putting into your EV

[trb10]

The government cannot afford to lose the millions they receive in petrol revenue.  You can be assured once EV ownership reaches a certain level you can be waving goodbye to your 7p per KW to charge.

[DJ Kav]

LDC7080 wrote:

i cannot see them cutting VAT on public charging. afterall the 2 certainties in life are death and taxes. i would go as far as to say that VAT on home charging will increase to 20% first. companies already have the tech to know how much juice you are putting into your EV

Not if you use a ‘granny’ charger and by-pass the whole ‘smart’ wall charger.
Then how would that work with people who have solar and battery installations or V2x?

I have ASD and thus have difficulty with social and understanding information, written and verbal. I process information in logical blocks, before I reply. Sometimes I'm right and sometimes I'm wrong.
I also have a corneal visual condition, which makes me visually impaired without daytime, or daytime bulbs, among other disabilities/conditions.

[Author]

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