01/10/2026
⚡ ELECTRICITY – 0% VAT
From 1 October 2026 to 31 March 2027, qualifying domestic electricity in Great Britain is subject to 0% VAT instead of 5%.
Who does this apply to?
Households in England, Scotland and Wales. In certain circumstances, the 0% rate may also apply to small businesses, charities and residential care homes that previously qualified for the reduced 5% VAT rate on electricity.
What does this mean in practice?
The 5% VAT charge on qualifying electricity supplies will temporarily be removed. However, this does not necessarily mean that every household’s overall energy bill will fall. Your final bill will still depend on electricity prices, how much energy you use and your tariff.
🚬 NEW DUTY ON VA**NG LIQUIDS
From 1 October 2026, a new Va**ng Products Duty has also come into effect. This is a new duty on liquids intended for use in electronic ci******es, commonly known as vapes.
The duty is £2.20 per 10 ml of va**ng liquid.
It applies to va**ng liquids with or without ni****ne.
Who does this affect?
It is particularly important for businesses that manufacture va**ng liquids in the UK or import them into the UK. These businesses may now have additional HMRC registration, duty payment and product labelling requirements.
Consumers do not pay this duty directly to HMRC. However, the new duty may be reflected in the retail price of va**ng liquids.
📩 Do you run a business and are unsure whether these changes apply to you?
Contact RK Accounting Ltd and we can help you understand how the new rules may affect your business.
🔄 Please share this information – it may be useful to your friends, colleagues or business contacts.