Some drivers to pay £100 more car tax in 2024 as experts demand change

Electric car owners will have to pay hundreds more this year due to costly VAT charging fees. Drivers are being forced to pay 20 per cent VAT when topping up at public charging bays compared to just five percent at home.

It means those without access to off-street charging plugs are worse off and have to pay more - with some forking out hundreds extra each year. According to recent data, the average difference between public and private charging costs is about £92 to £138 per month.

Motoring experts at carwow are now calling for an immediate cut to VAT fees after July’s General Election. Steve Walker, head of digital content, said a cut to VAT fees would be a huge incentive for drivers.

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He said: "Government help is more urgently needed in the field of EV infrastructure to boost roll-out and lower costs with a VAT cut on charging. All things being equal, the average motorist will prefer the driving and ownership experience of an EV over a petrol or diesel car, they just need the sums to add up and some confidence to take the big step."

According to carwow’s most recent polling, reducing VAT on public charging bays was a key issue for by motorists - with 12 percent wanting to see action taken to change the funding model. Carwow’s push comes after the Society of Motor Manufacturers and Traders (SMMT) and the AA called for fees to be cut, Express reports.

A coalition involving Eon, the RAC, the Renewable Energy Association, andFairCharge has called for the 20 percent fee to be cut. But the Government recently disagreed with a House of Lords report calling for cuts, highlighting that VAT was a 'broad-based' tax.

They stressed that expanding VAT relief would also impose 'additional pressure on public finances'. Labour’s manifesto also failed to mention a VAT price cut. Iain Reid, head of editorial at carwow, said: "We’d have liked to see more incentives for those looking to make the switch, for example, meeting our calls for funding or grants for EV purchases and home-based charging, and cutting VAT on public charge points."