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Road Fuel Scale Charges
If you use commercial vehicles in your business - i.e. company cars - you can claim back ALL of the VAT on fuel and pay a 'road fuel scale charge'. This charge compensates for the private use of the vehicle which includes travelling to and from work (this is not considered as business travel).
To qualify for road fuel scale charges, you must be VAT registered.
"an extra option of claiming back VAT on road fuel"
Road fuel scale charges are not compulsory, but are introduced to give an employer an extra option of claiming back VAT on road fuel. By choosing not to pay the road fuel scale charge, you cannot claim back all of the VAT on fuel - only that which has been used strictly for business use.
Road fuel scale charges mainly benefit businesses where vehicles build up high mileage for private use. Otherwise, it may be more worthwhile logging your business and private miles separately and claiming VAT solely on the business miles.
This is with respect to the charges (see below) that are expected to increase in future budget announcements.
Road Fuel Scale Charges
The following tables show the current (from 1st May 2005) road fuel scale charges which can be paid monthly, every 3 months or yearly.
Over a 12 Month Period
Engine Size
(cc)
Scale
Charge
DIESEL
VAT due per
vehicle
DIESEL
Scale
Charge
OTHER
VAT due per
vehicle
OTHER
1400 or less
£945.00
£140.74
£985.00
£146.70
1401 to 2000
£945.00
£140.74
£1245.00
£185.43
2001 or more
£1200.00
£178.72
£1830.00
£272.55
Over a 3 Month Period
Engine Size
(cc)
Scale
Charge
DIESEL
VAT due per
vehicle
DIESEL
Scale
Charge
OTHER
VAT due per
vehicle
OTHER
1400 or less
£236.00
£35.15
£246.00
£36.46
1401 to 2000
£236.00
£35.15
£311.00
£46.32
2001 or more
£300.00
£44.68
£457.00
£68.06
Over a 1 Month period
Engine Size
(cc)
Scale
Charge
DIESEL
VAT due per
vehicle
DIESEL
Scale
Charge
OTHER
VAT due per
vehicle
OTHER
1400 or less
£78.00
£11.62
£82.00
£12.21
1401 to 2000
£78.00
£11.62
£103.00
£15.34
2001 or more
£100.00
£14.89
£152.00
£22.64
If you decide to use the road fuel scale charges, they should be introduced at the start of your first accounting period on or after 1st May 2005.
"introduced at the start of your first accounting period on or after 1st May 2005"
Further Information
Further detailed information regarding road fuel scale charges and Motoring Expenses can be found on the HM Customs & Excise web site at:
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If you use commercial vehicles in your business - i.e. company cars - you can claim back ALL of the VAT on fuel and pay a 'road fuel scale charge'. This charge compensates for the private use of the vehicle which includes travelling to and from work (this is not considered as business travel).
