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VAT Fuel Scale charges go green |
| by Alexander Probin - 28/09/2007 |
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| "Regular tax updates from Tax and Accountancy specialists - Alexander Probin. The revised VAT Fuel scale charges have now been introduced. This article illustrates what the new rates are now." |
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VAT:Fuel scale charge - new CO2 basis
We would like to remind clients that Revenue and Customs announced changes to the VAT fuel scale charge earlier this year. The changes came into effect on 1 May 2007 and businesses must use the new scales from the start of their first accounting period beginning on or after this date.
The previous VAT fuel scale charge, which was based on engine size and fuel type, has been replaced by a fuel scale charge based solely on the CO2 rating of a car. The new table, which mirrors that used for direct tax purposes, will have 21 bands with 5g/km increments.
Accordingly you must calculate car scale charges, for VAT Returns beginning on or after 1 May 2007 by reference to the new C02 charges.
If you would like our help applying the new rules to your first affected VAT return please give us a call.
Company Cars - Advisory Fuel Rates for company cars
The Revenue have also revised the approved mileage rates if you need to make a claim for the fuel cost of your business motoring. The rates which apply from 1 August 2007 are:(The rates quoted are pence per mile)
Petrol - 1400cc or less 10p, 1401cc to 2000cc 13p, over 2000cc 18p.
Diesel - 1400 cc or less 10p, 1401cc to 2000cc 10p, over 2000cc 13p.
LPG - 1400cc or less 6p, 1401cc to 2000cc 8p, over 2000cc 10p.
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| Contact Email: info@alexanderprobin.com |
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