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New VAT fuel scale charges for 2014/15

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Man at computer looking at the new VAT fuel scale charges

New VAT fuel scale charges: apply to all accounting periods from May 2014

THERE are new VAT fuel scale charges that you should be using from May accounting periods onwards.

The VAT fuel scale charges

  • If you supply free fuel to company car drivers – use the new tables
  • If the CO2 emissions fall between bands, round down
  • Bi-fuel cars with two CO2 emission figures should use the lower CO2 figure
  • For older cars without a CO2 emission figure use band 140 for 1400cc or less; band 175 for 1401cc-2000cc; band 225 for 2001cc and above

The VAT fuel scale charges should be used by any SME business that supplies free fuel to its company car drivers and then recovers the VAT on the fuel.

The scale charges are then applied so HMRC can recover the private VAT element of the fuel.

As with most things company car related – such as the company car tax tables – the fuel scale charges are based on the CO2 emissions of the company cars you run which are banded in 5g/km steps from 120g/km or less to 225g/km or more.

The VAT fuel scale charges allow you to account for the VAT on free fuel in monthly, quarterly or yearly periods.

If your staff repay their private business mileage then there is no need to use the VAT fuel scale charges.

If you have a pool car that is used exclusively for business, then the VAT fuel scale charges do not apply.

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One comments on this post

  1. David Austin
    Commented on

    How do you know what CO2 band your cars are? Probably best to contact the dealer/fleet consultant?

    You can either use our own Company Car Tax Calculator – simply find your car and it will show the CO2 rating; alternatively you can look it up using the Government’s VCA site.

    Ralph Morton, editor

    | Reply

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