Andy Burnham’s new driveway rule change has come into effect in October, but not all drivers are feeling the benefit of extra VAT price savings. The Prime Minister slashed VAT rates on domestic electricity at the beginning of October, with the move having a knock-on effect for electric car owners across the UK.
VAT rates on domestic electricity were cut from 5% to 0% from October 1 in a move that experts previously suggested could save EV owners £40 per year. However, motorists without access to a driveway or off-street charging are still forced to pay the hefty 20% VAT rates, with the so-called “driveway divide” increasing this Autumn.
Cost difference between home and public charging
Motorists topping up at home pay around 7p per kWh to charge their vehicles, with those using public plugs paying closer to 50p per kWh. Jake Lambert, temporary car insurance expert at Tempcover, has now revealed that drivers could save on the extra costs by lending their EV to a family or friend.
Asking loved ones or friends to chip in for electricity is absolutely fine and could be an easy way to recoup some of the lost money from costly public charging.
Expert advice on sharing your EV
Speaking exclusively to The Express, Jake said: "For motorists without a driveway, the VAT gap on public charging is a real extra cost. But for people who only use their EV occasionally, lending it to family or friends is one way to help each other out."
"If you lend your electric car to a friend or family member, it's generally fine for them to chip in towards the electricity they use, as long as it covers no more than the actual cost of the charge and isn’t a way of making money from the car."
Alternative charging options
Some friends or family members may also have access to home charging facilities and can top-up the battery before dropping it off. Many brand new homes in England and Scotland are now fitted with 7kW smart EV chargepoints and will be much cheaper than using public bays.
Community driveway-sharing apps such as CoCharger and JustCharge allow motorists without access to a driveway to use domestic plugs. Public chargers can also be cheaper at off-peak hours, while some areas also have free charging points.
Insurance warning for borrowers
However, Jake has warned motorists could still forget one crucial rule when handing over the keys to their EV. He told The Express: "They'll still need to be insured for the trip, so it's worth making sure that's in place before they set off, for example with temporary EV cover for just the time they're using the car."
