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New HMRC VAT road fuel scale charges for 2012/13

New company car fuel scale charges
IF YOU supply free fuel to company car drivers, you need to use the latest fuel scale charges from May 2012.
Story: Ralph Morton
50_WomanWorkingOutFuelScaleCharge
Use the new fuel scale charges to work out the VAT owed on supplying free fuel to company car drivers

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5 May 2012

Business woman working out fuel scale charge
Use the new fuel scale charges to work out the VAT owed on supplying free fuel to company car drivers

Author: Ralph Morton

HMRC has just announced the new fuel scale charge for 2012/13 – it’s vital if your business supplies free fuel to your company car drivers.

Now, of course, your employee who benefits from the company car and the free fuel provided will have to pay the benefit in kind tax on that.

But there’s a little more taxation to go. You can claim for all the VAT on the fuel provided – without the need to laboriously work out what was for business and private usage.

However, the VAT-man gets the private element back by applying the HMRC’s VAT fuel scale charges.

The new VAT fuel scale charges for 2012/13 apply to all accounting periods beginning on 01 May 2012 or from that point onwards.

Like company car tax, the fuel scale charges are based on  CO2 emissions and rise in steps of 5% from 120g/km or less to 225g/km and over. If the company car in question has CO2 emissions between bands, just round down.

The VAT can be accounted for either monthly, quarterly or yearly – all three scale charges are shown below.

What if the company car is only used for business?

If there is no private usage – and the company car is always left at the office or works premises – then the full amount of VAT on fuel can be recovered. You don’t need to apply the fuel scale charges.

I’m a small business with a few cars – this looks very complicated. Do I have to use it too?

No, quite simply. HMRC is happy for a simpler approach for smaller businesses. Don’t account for any of the VAT – and just use the total amount as a business expense (subject to the percentage of private usage).

We have some bi-fuel cars – which CO2 figure do we use?

For bi-fuel company cars, use the lower of the CO2 emission figures when applying the fuel scale charge.

Our company cars are too old to have CO2 emission figures. What should I do?

This is simple enough. If the company car has an engine capacity of up to 1.4-litres, then use the 140g/km CO2 band in the VAT fuel scale charge list. If the engine size is between 1.4 to 2.0 litres, then use the 17g/km CO2 band. And for company cars over 2.0-litres then use the 225g/km fuel scale band.

Road fuel scale charge 2012/13 – 1 month period

C02 band

Vat fuel scale charge, 1 month period

Vat on 1 month charge, £ VAT exclusive 1 month charge, £
120 or less  52.00  8.67  43.33
125  78.00  13.00  65.00
130  84.00  14.00  70.00
135  89.00  14.83  74.17
140  94.00  15.67 78.33
145 99.00  16.50  82.50
150 105.00  17.50  87.50
155  110.00 18.33  91.67
160  115.00 19.17 95.83
165  120.00  20.00  100.00
170  126.00  21.00  105.00
175 131.00 21.83  109.17
180 136.00 22.67 113.33
185 141.00 23.50 117.50
190 147.00  24.50  122.50
195  152.00  25.33  126.67
200 157.00 26.17 130.83
205  162.00 27.00  135.00
210  168.00 28.00 140.00
215  173.00  28.83 144.17
220  178.00 29.67  148.33
225 or more 183.00 30.50  152.50

Road fuel scale charge 2012/13 – 3 month period

C02 band

Vat fuel scale charge, 3 month period

Vat on 3 month charge, £ VAT exclusive 3 month charge, £
120 or less 157.00 26.17 130.83
125 236.00 39.33 196.67
130 252.00 42.00 210.00
135 268.00 44.67 223.33
140 283.00 47.17 235.83
145 299.00 49.83 249.17
150 315.00 52.50 262.50
155 331.00 55.17 275.83
160 346.00 57.67 288.33
165 362.00 60.33 301.67
170 378.00 63.00 315.00
175 394.00 65.67 328.33
180 409.00 68.17 340.83
185 425.00 70.83 354.17
190 441.00 73.50 367.50
195 457.00 76.17 380.83
200 472.00 78.67 393.33
205 488.00 81.33 406.67
210 504.00 84.00 420.00
215 520.00 86.67 433.33
220 536.00 89.33 446.67
225 or more 551.00 91.83 459.17

Road fuel scale charge 2012/13 – 12 month period

C02 band

Vat fuel scale charge, 12 month period

Vat on 12 month charge, £ VAT exclusive 12 month charge, £
120 or less 665.00 110.83 554.17
125 1000.00 166.67 833.33
130 1065.00 177.50 887.50
135 1135.00 189.17 945.83
140 1200.00 200.00 1000.00
145 1270.00 211.67 1058.33
150 1335.00 222.50 1112.50
155 1400.00 233.33 1167.67
160 1470.00 245.00 1225.00
165 1535.00 255.83 1279.17
170 1600.00 266.67 1333.33
175 1670.00 278.33 1391.67
180 1735.00 289.17 1445.83
185 1800.00 300.00 1500.00
190 1870.00 311.67 1558.33
195 1935.00 322.50 1612.50
200 2000.00 333.33 1666.67
205 2070.00 345.00 1725.00
210 2135.00 355.83 1779.17
215 2200.00 366.67 1833.33
220 2270.00 378.33 1891.67
225 or more 2335.00 389.17 1945.83

Editor’s note: You should always take professional advice on company car policy. Your accountant, business adviser, or fleet management consultant will be able to help with the correct company car tax allowance.

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Ralph Morton

Ralph Morton

Ralph Morton is an award-winning journalist and the founder of Business Car Manager (now renamed Business Motoring). Ralph writes extensively about the car and van leasing industry as well as wider fleet and company car issues. A former editor of What Car?, Ralph is a vastly experienced writer and editor and has been writing about the automotive sector for over 35 years.

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