Finance Bill Tracking Service 2009 | Budget 2009

BN69 VAT: CHANGES IN FUEL SCALE CHARGES

Who is likely to be affected?

1. Any businesses which recover input tax on fuel used for private motoring.

General description of the measure

2. This measure amends the VAT fuel scale charges for taxing private use of road fuel, to reflect changes in fuel prices.

Operative date

3. Businesses must use the new scale charges from the start of their next prescribed accounting period beginning on or after 1 May 2009.

Current law and proposed revisions

4. The fuel scale charges are set out in Table A in section 57(3) of the VAT Act 1994. A Statutory Instrument has been laid today to replace the current table with a new table to reflect changes to fuel prices.

5. The tables below show the revised VAT inclusive scale charges applicable in each accounting period, depending on whether it is a 12 month, three month or one month accounting period.

6. VAT is payable on these scale charges at the rate applicable at the time the charge is due. To calculate standard rate VAT from the VAT inclusive amount, multiply the VAT inclusive scale charge by the appropriate VAT fraction. At the time of publication standard rate VAT is 15 per cent for which the VAT fraction is 3/23, (at 17.5 per cent the VAT fraction would be 7/47). Further detailed guidance regarding calculating standard rate VAT in a VAT inclusive amount can be found on the HM Revenue & Customs (HMRC) website. This includes guidance for changes in the rate of VAT.

VAT fuel scale charges for 12 month return periods:

VAT fuel scale charge,
CO2 band, g/km 12 month period, £
120 or less 505.00
125 755.00
130 755.00
135 755.00
140 805.00
145 855.00
150 905.00
155 960.00
160 1,010.00
165 1,060.00
170 1,110.00
175 1,160.00
180 1,210.00
185 1,260.00
190 1,310.00
195 1,360.00
200 1,410.00
205 1,465.00
210 1,515.00
215 1,565.00
220 1,615.00
225 1,665.00
230 1,715.00
235 or more 1,765.00

VAT fuel scale charges for 3 month return periods:

VAT fuel scale charge,
CO2 band, g/km 3 month period, £
120 or less 126.00
125 189.00
130 189.00
135 189.00
140 201.00
145 214.00
150 226.00
155 239.00
160 251.00
165 264.00
170 276.00
175 289.00
180 302.00
185 314.00
190 327.00
195 339.00
200 352.00
205 365.00
210 378.00
215 390.00
220 403.00
225 416.00
230 428.00
235 or more 441.00

VAT fuel scale charges for 1 month return periods:

VAT fuel scale charge,
CO2 band, g/km 1 month period, £
120 or less 42.00
125 63.00
130 63.00
135 63.00
140 67.00
145 71.00
150 75.00
155 79.00
160 83.00
165 88.00
170 92.00
175 96.00
180 100.00
185 104.00
190 109.00
195 113.00
200 117.00
205 121.00
210 126.00
215 130.00
220 134.00
225 138.00
230 142.00
235 or more 147.00

7. The scale charge for a particular vehicle is determined by its CO2 emissions figure. Where the CO2 emissions figure of a vehicle is not a multiple of five, the figure is rounded down to the next multiple of five to determine the level of charge. For a bi-fuel vehicle which has two CO2 emissions figures, the lower of the two figures should be used. For cars which are too old to have a CO2 emissions figure HMRC have prescribed a level of emissions by reference to the vehicle's engine capacity (cc).

Further advice

8. An update to Notice 700/64 VAT: Motoring Expenses, including the revised figures for all categories of vehicle, will be available from the National Advice Service in due course.

9. If you have any questions about this change, please contact the National Advice Service on 0845 010 9000. Information about Budget measures is available on the HM Revenue & Customs website at www.hmrc.gov.uk