Finance Bill Tracking Service 2010 | Budget 2010

BN44 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. It will also amend the table of CO2 bands to maintain alignment with those used for direct tax purposes.

Operative date

3. Businesses must use the new scale charges from the start of their next prescribed accounting period starting on or after 1 May 2010.

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.

Annual charges (figures are inclusive of VAT):

CO2 band VAT fuel scale charge, 12 month period, £
120 or less 570.00
125 850.00
130 850.00
135 910.00
140 965.00
145 1,020.00
150 1,080.00
155 1,135.00
160 1,190.00
165 1,250.00
170 1,305.00
175 1,360.00
180 1,420.00
185 1,475.00
190 1,530.00
195 1,590.00
200 1,645.00
205 1,705.00
210 1,760.00
215 1,815.00
220 1,875.00
225 1,930.00
230 or more 1,985.00

Quarterly charges (figures are inclusive of VAT):

CO2 band VAT fuel scale charge, period, £ 3 month
120 or less 141.00
125 212.00
130 212.00
135 227.00
140 241.00
145 255.00
150 269.00
155 283.00
160 297.00
165 312.00
170 326.00
175 340.00
180 354.00
185 368.00
190 383.00
195 397.00
200 411.00
205 425.00
210 439.00
215 454.00
220 468.00
225 482.00
230 or more 496.00

Monthly charges (figures are inclusive of VAT):

CO2 band VAT fuel scale charge, 1 month period, £
120 or less 47.00
125 70.00
130 70.00
135 75.00
140 80.00
145 85.00
150 89.00
155 94.00
160 99.00
165 104.00
170 108.00
175 113.00
180 118.00
185 122.00
190 127.00
195 132.00
200 137.00
205 141.00
210 146.00
215 151.00
220 156.00
225 160.00
230 or more 165.00

6. 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 the 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 HM Revenue & Customs have prescribed a level of emissions by reference to the vehicle's engine capacity (cc).

Further advice

7. An update to Notice 700/64 VAT: Motoring Expenses, including the revised figures for all categories of vehicle, will be available from the VAT Helpline by the end of May.

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