VAT on electricity to be cut
The new Prime Minister has announced a cut to the rate of VAT on electricity from 1 October. What's the full story?
Andy Burnham's first tax policy has been announced. From 1 October to 31 March 2027, VAT will be cut from household electricity bills. The policy is supposed to help with the cost of living, but in reality, will save an average household just £45.
The rate of VAT will be cut from 5% to zero for six months, and any further changes will be announced in the next Budget. The VAT rate should be passed on to customers in England, Wales and Scotland, with similar support being rolled out in Northern Ireland. The cut applies even if you're on a fixed tariff, but note it only applies to electricity bills, not gas.
Related Topics
-
Electronic VAT return and payment due
-
Alternative education providers can protect VAT refund claims
HMRC has confirmed that some alternative providers of higher and further education can submit VAT refund claims following a Court of Appeal ruling, despite HMRC appealing the decision to the Supreme Court. What do you need to know?
-
Old IHT forms will be rejected
HMRC has stopped processing old versions of the Inheritance Tax IHT100 forms from 31 August 2026. Anyone reporting an IHT chargeable event involving a gift or trust will need to make sure they are using the correct forms. What do you need to know?