Fuel scale charge
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Fuel scale charge
If you get your private fuel use covered by your employer, known as ‘free fuel’, it’s taxed as a benefit

THE Chancellor announced in his Budget that the Fuel Scale Charge for 2014/15 would increase by the rate of inflation (RPI scale) for September 2013.

The Fuel Scale Charge itself rises from April 06, 2013, from £20,200 to £21,100 – making it even more expensive for company car drivers to take ‘free fuel’.

The Fuel Scale Charge is payable by anyone receiving the benefit of ‘free’ fuel for either cars or vans.

For cars, this is calculated as a notional benefit of £21,100 multiplied by the car’s CO2 emissions band and multiplied by the drivers marginal rate of tax (either 20%, 40% or 45%). Drivers of diesel engined cars will have a 3% surcharge on this benefit in the same way that they do have for company car tax.

For vans, the benefit is assumed at a flat rate of £564 from April 06 2013 (previously £500).

Employers will have to pay Class 1a National Insurance contributions on the free fuel benefit.

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