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VAT or Value Added Tax , is something that a VAT-registered business will add to most of the products and services which they sell. Once a business in the UK has a turnover over £90,000 there is an obligation to register for tax. How does this relate to charging your electric vehicles?
When you charge your EV at home, you do pay an element of VAT on the electricity being used – currently set at 5%. However, the new Prime Minister Andy Burnham has made some early announcements in his tenure by confirming that VAT will no longer be charged on your home electricity bills. Published on 21 July 2026 the Government have confirmed that immediate action is being taken to help UK households more easily and sustainably run their lives.

Utilising the £1.8 billion Digital ID programme cancellation, the new Government are aiming to put more money back into people’s pockets and “bring back hope”.
As of 1 October 2026, our domestic electricity will no longer incur VAT, just in time for the Ofgem price cap adjustments. By addressing this early into the new Government, there is an aim to provide more support for UK citizens, building upon the £150 removed from our bills in last October’s changes (2025).
Since many UK households are moving to electric cars, and charging at home, this essentially means that the running costs on their houses AND their vehicles can equally benefit from a proactive and supporting measure.
The Government do expect all suppliers to pass these cost-savings on, so the expectation is that all major suppliers will allow UK electric drivers to make the cost-savings at home. While EVs are already being seen as much cheaper in running costs than a petrol or diesel car, this added incentive is another confidence booster.
However, this action has highlighted another conundrum which the EV industry has with charging – the level of VAT on a public charging experience. As a customer will see on our website, or on our EVC™, the costs of running your EV using electricity at home is FAR cheaper than in the public network.

Especially with DC, or rapid charging, where the cost per unit (pence per kWh), is often 10 times the price of a home charging experience. This is why some groups are suggesting that those residents without a home charger, as they live in apartments or terraced properties, cannot afford to go electric in the same way as others.
The big inequality is that public charging incurs a 20% VAT cost. In removing the VAT for those at home, this only widens the gap between the home and public charging experience, making it even more unfair to those who rely on the public network.
Our partners at the EVA are major advocates for the UK’s drivers and have often critiqued the unfairness and disparity between the two experiences. They are continuing to work with others for this to be reviewed and amended.
For new BEVs like the Nº7 from DS, having a fair and open market will be key to the uptake on the vehicle. A premium electric SUV, this is utilising sculpted design, innovation and refined craftmanship to create a distinctive driving experience for the UK leasing market.
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Travel in first class, the new UV is about combining electric freedom, comfort and the distinctive DS design – where elegance and technology are combined for the driver. A modular interior and redefined spacious build does mean that this is a family-friendly zero-emission option.
Some of the key highlights and selling-points include the signature front-end, redefined alloy wheels, captivating presence and sensory-invoking interior (all with exquisite materials). With DS forming part of the Stellantis powerhouse, this is utilising robust electrification tech with a finesse and finish that wouldn’t look out of character on a prestige German product. You can find out more on the DS website.

Some of the notable additional options include the trailer hitch and the laminated glass roof with acoustic and thermal protection. Colours include the Perla Nera Black, Topaz Blue, Palladium Grey, Crystal Pearl, Alabaster White and Silk Green.

At the time of launch you can choose between 3 key battery options including:


Head to our dedicated DS special offers or speak to our experts directly on 01942 910 001 or by emailing us at [email protected]
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