We recently reported that a tribunal has come down in favour of public charging being subject to VAT at 5%, not 20% (as maintained by HMRC). We suggested that HMRC would be unwise to appeal against that decision but it has now decided to do so. Here are some of the comments reported in the press in reaction to HMRC’s decision to appeal (we were unable to find any in favour of the appeal):
- For a government that talks about standing up for “working people”, the decision to appeal this ruling flies in the face of that.
- Ministers are doubling down on a system that penalises millions of drivers who rely on public charging. Those drivers can pay up to ten times more to charge an electric car than someone with a driveway – and in some cases, that makes EVs more expensive to run than petrol.
- This hits those without driveways the hardest, making it more expensive for them to switch and if the government is serious about making EVs affordable, it cannot allow a two-tier system where access to cheaper, cleaner driving depends on what type of property you have.
- This is a deeply disappointing decision, and one that sends entirely the wrong signal to the millions of people who rely on public charging.
- The government talks about accelerating EV adoption, yet is actively choosing to maintain a tax structure that makes public charging more expensive than it needs to be and undermines the transition.
- About 40% of the UK population, they don’t have drives. Transitioning to EVs is a huge problem. Adding 20% makes a huge difference. My personal view is I think we should be making the transition to EVs as cheap as we can. This is an environmental issue.
- HMRC’s decision is disjointed and disappointing. On the same day it [the government] commits to doubling down on clean power and electrification, HMRC appeals against a legal ruling which could cut the cost of EV charging for millions.
- Interest in EVs is surging as drivers look to shield themselves from volatile petrol prices. But for the many who cannot charge at home that equation is still not straightforward; addressing the pavement tax would help make it so. We urge that as government progresses its review of the cost of public EV charging, equalising VAT should remain on the table regardless of this ruling.
- Drivers without off-street parking already pay more to charge simply because of where they live. HMRC appealing this ruling is the government choosing to defend that inequality. If you’re serious about EV adoption, you don’t fight the ruling that would fix your most regressive charging cost. You let it stand. Their actions don’t match the narrative.
- The government cannot credibly champion electrification while simultaneously fighting in court to maintain a tax regime that makes public charging more expensive than at home. We urge HMRC to reconsider its appeal and instead work with industry to create a level playing field that gives every driver – including those who rent – a fair chance to go electric.
- By appealing, the government is telling 1.4 million current EV drivers, and more than 30 million who will have to switch, that it is willing to go to court to keep public charging costs high.
