Will vaping still be cheaper than smoking after the UK’s £2.20-per-10ml duty? A practical cost comparison for UK vapers

Introduction — why you may want to stock up on 10ml e‑liquids now

The UK has announced a Vaping Products Duty set at a flat rate of £2.20 per 10ml of vaping liquid (equal to £0.22 per 1ml). Because VAT is charged after the excise duty, the true retail price rise is larger than the headline figure. If you vape regularly, this is a significant increase — and it means now is a rational time to consider stocking up on 10ml bottles before the duty is applied. This article gives a clear, practical cost comparison between vaping and smoking after the duty, explains how the tax is applied, and outlines sensible stocking and storage advice.

Key concepts: how the new duty works

• Flat rate by volume: The duty is charged at £2.20 per 10ml (or £0.22 per 1ml) regardless of nicotine strength — nicotine, nicotine‑free and all formats are affected (GOV.UK).
• Rounding rules: Duty is charged by volume on monthly returns and amounts are rounded down to the nearest penny — for example, a 2ml prefilled pod would attract £0.44 in duty (GOV.UK).
• VAT on top: VAT is applied after excise duty, which increases the effective consumer price rise. Industry worked examples show an increase of roughly £2.64 extra per 10ml once duty and VAT are applied.
• All formats covered: The duty applies to e‑liquid in bottles (10ml, shortfills, longfills) and the liquid inside prefilled pods and disposables — all popular formats used by regular vapers will be taxed.

Where and when duty is applied

The excise duty is charged at the point of manufacture, import or release for free circulation. There are mechanisms — for example duty suspension in approved warehouses — which allow businesses to hold stock without immediately paying duty, but once product is released for sale the duty becomes payable and retailers will reflect that in prices (GOV.UK guidance on duty points and suspension).

Practical cost comparisons: worked examples

To compare vaping and smoking costs we’ll set transparent assumptions so you can adjust them to your situation.

Assumptions used (examples):

• Pre‑duty retail 10ml price: £2.50 (many sub‑£3 options exist today).
• Duty + VAT adds ~£2.64 per 10ml (industry worked examples — duty £2.20 + VAT on duty and base price).
• Typical cigarette pack price for comparison: £14 per 20‑pack (use whichever pack price applies to you).
• Vaping consumption scenarios: light 2ml/day, moderate 4ml/day, heavy 6ml/day.

Cost per 10ml

• Pre‑duty: £2.50 per 10ml
• Post‑duty (pre‑retail): £2.50 + £2.64 ≈ £5.14 per 10ml

Annual costs (examples)

Number of 10ml bottles per year: light 73; moderate 146; heavy 219.

• Light vaper (2ml/day): pre‑duty £182.50; post‑duty £375.22
• Moderate vaper (4ml/day): pre‑duty £365.00; post‑duty £751.44
• Heavy vaper (6ml/day): pre‑duty £547.50; post‑duty £1,125.66

Smoking comparison: at £14 per 20‑pack, someone smoking 10 cigarettes/day (half a pack/day) spends ~£2,555 per year. Even after the duty, regular vaping remains materially cheaper than continuing to smoke in these examples — but the saving is reduced.

Key takeaway: the rises are sizeable, but for many vapers switching from cigarettes vaping can still be cheaper. The difference is that the duty will cut into the cost advantage and push many previously very inexpensive 10ml bottles into the £5–£7 retail range that several retailers have already signalled (Edge Vaping, Vampire Vape, EcoSmok).

How vapers and retailers may respond

• Change in purchasing patterns: Because the tax is volume‑based, buyers and sellers may shift toward larger bottles (shortfills, longfills) or to nicotine‑free shortfills plus nicotine shots — but note the duty applies to liquid volume regardless of nicotine content.
• Format shifts: Some retailers may restructure ranges, withdraw low‑price 10ml lines or promote 100ml shortfills as better value per ml.
• Stock and warehouse effects: Businesses using duty suspension can manage when duty is paid; this affects wholesale pricing and how long retailers can sell pre‑duty stock.

If you prefer to buy 10ml bottles for convenience or for trying flavours, consider stocking up now while prices remain lower — examples to consider include 10ml e‑liquids and larger formats you might switch to. For instance, a small 10ml bottle option you might pick up today is 0mg Britannia Gold 10ml e‑liquids 40VG/60PG. If you want larger, higher‑value bottles to reduce the per‑ml impact you could look at shortfills and longfills such as 0mg Fantasi 100ml Shortfill E‑liquid 70VG/30PG or 0mg Crystalize Bar Salts 120ml Longfill (often sold with nicotine shots). Even disposables contain liquid subject to the duty — for example, the liquid inside the 0mg Ifresh 10000 Puffs 2in1 Disposable Pod Kit will be taxed.

Stocking up safely: practical tips

• Buy what you will use: Stock up for reasonable personal consumption to avoid waste. E‑liquids typically keep well unopened for 12–24 months if stored correctly.
• Storage: Keep bottles in a cool, dark place away from heat and sunlight; tightly seal lids. Nicotine can darken over time but remains usable.
• Label and rotate: Note purchase dates and use oldest stock first.
• Consider format: Larger shortfills/longfills can offer better per‑ml value, but you’ll need to mix nicotine shots where required — remember the duty applies to nicotine shots too.

Conclusion — act now to protect your wallet

The new £2.20 per 10ml Vaping Products Duty is a substantial change that will push many low‑cost 10ml bottles toward the £5–£7 retail band once VAT is included. If you rely on 10ml bottles, now is a sensible time to start stocking up before the duty takes effect — buying ahead will protect you from the immediate retail price jump and save money in the long run. At the same time, consider larger formats and sensible storage practices to reduce per‑ml cost and waste. While vaping is likely to remain cheaper than smoking for many former smokers, the tax significantly narrows the margin — planning your purchases today is a practical way to keep costs down.

For a hassle‑free start, consider stocking a mix of formats to see what suits you best, and remember to buy from reputable retailers who can advise on shelf life and mixing if you move to shortfills or longfills.