Businessman at laptop computer
New VAT fuel scale charges: businesses should use them if they supply free fuel to their company car drivers
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Businessman at laptop computer
New VAT fuel scale charges: businesses should use them if they supply free fuel to their company car drivers

THERE are new VAT fuel scale charges.

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

HMRC has introduced new tables which should be used for all new businesses accounting periods from 01 May 2013.

The VAT fuel scale charges are important for all SME companies that supply free fuel to their company car drivers and claim the VAT on the fuel supplied.

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

The fuel scale charges are based on the CO2 emissions of your company cars – rather like the company car tax tables.

The bands rise 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.

Do not use the VAT fuel scale charges if the car is a pool car and is used only for business.

There’s also a simplified approach for smaller businesses that don’t want to be bothered with the complexity of the VAT fuel scale charges: simply ignore the VAT but claim the whole cost of the fuel as a business expense minus a percentage of the private mileage.

Read more on the VAT fuel scale charges

Discover how to apply the fuel scale charges here: Applying the VAT Fuel Scale Charges

Find out last year’s rates: New HMRC VAT road fuel scale charges for 2012/13

 

VAT fuel scale charge 2013/14 – 1 month period

CO2 bandVAT fuel scale charge, 1 month periodVAT on 1 month chargeVAT exclusive 1 month charge
120 or less£56.00£9.33£46.67
 125 £84 £14 £70
 130 £89£14.83 £74.17
 135 £95 £15.83 £79.17
 140 £101 £16.83 £84.17
 145 £106 £17.67 £83.33
 150 £112 £18.67 £93.33
 155 £118 £19.67 £98.33
 160 £123 £20.50 £102.50
 165 £129 £21.50 £107.50
 170 £134 £22.33 £111.67
 175 £140 £23.33 £116.67
 180 £146 £24.33 £121.67
 185 £151 £25.17 £125.83
 190 £157 £26.17 £130.83
 195 £163 £27.17 £135.83
 200 £168 £28 £140
 205 £174 £29.00 £145.00
 210 £179 £29.83 £149.17
 215 £185 £30.83 £154.17
220 £191 £31.83 £159.17
 225+ £196 £32.67 £163.33

VAT fuel scale charge 2013/14 – 3 month period

CO2 bandVAT fuel scale charge, 3 month periodVAT on 3 month chargeVAT exclusive 3 month charge
120 or less£168£28£140
 125 £253 £42.17 £210.83
 130 £269£44.83 £224.17
 135 £286 £47.67 £238.33
 140 £303 £50.50 £252.50
 145 £320 £53.33 £266.67
 150 £337 £56.17 £280.83
 155 £354 £59 £295
 160 £371 £61.83 £309.17
 165 £388 £64.67 £323.33
 170 £404 £67.33 £336.67
 175 £421 £70.17 £350.83
 180 £438 £73 £365
 185 £455 £75.83 £379.17
 190 £472 £78.67 £393.33
 195 £489 £81.50 £407.50
 200 £506 £84.33 £421.67
 205 £523 £87.17 £435.83
 210 £539 £89.83 £449.17
 215 £556 £92.67 £463.33
220 £573 £95.50 £477.50
 225+ £590 £98.33 £491.67

 

VAT fuel scale charge 2013/14 – 12 month period

CO2 bandVAT fuel scale charge, 12 month period, £VAT on 12 month charge, £VAT exclusive 12 month charge, £
120 or less£675£112.50£562.50
 125 £1010 £168.33 £841.67
 130 £1080£180 £900
 135 £1145 £190.83 £954.17
 140 £1215 £202.50 £1012.50
 145 £1280 £213.33 £1066.67
 150 £1350 £225 £1125
 155 £1415 £235.83 £1179.17
 160 £1485 £247.50 £1237.50
 165 £1550 £258.33 £1291.67
 170 £1620 £270 £1350
 175 £1685 £280.83 £1404.17
 180 £1755 £292.50 £1462.50
 185 £1820 £303.33 £1516.67
 190 £1890 £315 £1575
 195 £1955 £325.83 £1629.17
 200 £2025 £337.50 £1687.50
 205 £2090 £348.33 £1741.67
 210 £2160 £360 £1800
 215 £2225 £370.83 £1854.17
220 £2295 £382.50 £1912.50
 225+ £2360 £393.33 £1966.67

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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