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SEARCH, INDEX, UPDATES, CONTENTS, SERVICES, VAT RETURNS, CAR FUEL SCALE CHARGES

If a business pays for road fuel it has 4 options -

  1. claim all the VAT if 100% is used for business purposes (Company Directors and employees private travel is not considered to be business use)
  2. claim all VAT charged and apply the fuel scale charge (see below)
  3. use detailed mileage records to separate business and private mileage (see below)
  4. not claim any input VAT in respect of fuel

This means you can claim all the VAT on road fuel if the business pays for fuel for business use only, or if the business also provides fuel for private use as long as the appropriate fuel scale charge value is applied.

Fuel Scale Charges - changed in the March 2008 budget, effective for VAT accounting periods starting after 30 April 2008 -

------------- Monthly returns -------------  ------------ Quarterly returns -------------
CO2 band Scale charge VAT Net charge Scale charge VAT Net charge
up to 120 £46.00 £6.85 £39.15 £138.00 £20.55 £117.45
120 - 139 £69.00 £10.28 £58.72 £207.00 £30.83 £176.17
140 - 145 £73.00 £10.87 £62.13 £221.00 £32.91 £188.09
145 - 149 £78.00 £11.62 £66.38 £234.00 £34.85 £199.15
150 - 154 £82.00 £12.21 £69.79 £248.00 £36.94 £211.06
155 - 159 £87.00 £12.96 £74.04 £262.00 £39.02 £222.98
160 - 164 £92.00 £13.70 £78.30 £276.00 £41.11 £234.89
165 - 169 £96.00 £14.30 £81.70 £290.00 £43.19 £246.81
170 - 174 £101.00 £15.04 £85.96 £303.00 £45.13 £257.87
175 - 179 £105.00 £15.64 £89.36 £317.00 £47.21 £269.79
180 - 184 £110.00 £16.38 £93.62 £331.00 £49.30 £281.70
185 - 189 £115.00 £17.13 £97.87 £345.00 £51.38 £293.62
190 - 194 £119.00 £17.72 £101.28 £359.00 £53.47 £305.53
195 - 199 £124.00 £18.47 £105.53 £373.00 £55.55 £317.45
200 - 204 £128.00 £19.06 £108.94 £386.00 £57.49 £328.51
205 - 209 £133.00 £19.81 £113.19 £400.00 £59.57 £340.43
210 - 214 £138.00 £20.55 £117.45 £414.00 £61.66 £352.34
215 - 219 £142.00 £21.15 £120.85 £428.00 £63.74 £364.26
220 - 224 £147.00 £21.89 £125.11 £442.00 £65.83 £376.17
225 - 229 £151.00 £22.49 £128.51 £455.00 £67.77 £387.23
230 - 234 £156.00 £23.23 £132.77 £469.00 £69.85 £399.15
235 or more £161.00 £23.98 £137.02 £483.00 £71.94 £411.06

Fuel Scale Charges - changed basis in the March 2007 budget, effective for VAT accounting periods starting after 30 April 2007 -

------------- Monthly returns -------------  ------------ Quarterly returns -------------
CO2 band Scale charge VAT Net charge Scale charge VAT Net charge
up to 144 £60.00 £8.94 £51.06 £182.00 £27.11 £154.89
145 - 149 £65.00 £9.68 £55.32 £195.00 £29.04 £165.96
150 - 154 £69.00 £10.28 £58.72 £207.00 £30.83 £176.17
155 - 159 £73.00 £10.87 £62.13 £219.00 £32.62 £186.38
160 - 164 £77.00 £11.47 £65.53 £231.00 £34.40 £196.60
165 - 169 £81.00 £12.06 £68.94 £243.00 £36.19 £206.81
170 - 174 £85.00 £12.66 £72.34 £256.00 £38.13 £217.87
175 - 179 £89.00 £13.26 £75.74 £268.00 £39.91 £228.09
180 - 184 £93.00 £13.85 £79.15 £280.00 £41.70 £238.30
185 - 189 £97.00 £14.45 £82.55 £292.00 £43.49 £248.51
190 - 194 £101.00 £15.04 £85.96 £304.00 £45.28 £258.72
195 - 199 £105.00 £15.64 £89.36 £317.00 £47.21 £269.79
200 - 204 £109.00 £16.23 £92.77 £329.00 £49.00 £280.00
205 - 209 £113.00 £16.83 £96.17 £341.00 £50.79 £290.21
210 - 214 £117.00 £17.43 £99.57 £353.00 £52.57 £300.43
215 - 219 £121.00 £18.02 £102.98 £365.00 £54.36 £310.64
220 - 224 £126.00 £18.77 £107.23 £378.00 £56.30 £321.70
225 - 229 £130.00 £19.36 £110.64 £390.00 £58.09 £331.91
230 - 234 £134.00 £19.96 £114.04 £402.00 £59.87 £342.13
235 - 239 £138.00 £20.55 £117.45 £414.00 £61.66 £352.34
240 or more £142.00 £21.15 £120.85 £426.00 £63.45 £362.55

Fuel Scale Charges - increased in the March 2006 budget, effective for VAT accounting periods starting after 30 April 2006 -

Monthly returns
Cylinder capacity of vehicle Petrol scale charge VAT due per car Diesel scale charge VAT due per car
Up to 1400cc £91 £13.55 £86 £12.81
1401cc to 2000cc £115 £17.13 £86 £12.81
2001cc or more £169 £25.17 £110 £16.38
Quarterly returns
Cylinder capacity of vehicle Petrol scale charge VAT due per car Diesel scale charge VAT due per car
Up to 1400cc £273 £40.66 £260 £38.72
1401cc to 2000cc £346 £51.53 £260 £38.72
2001cc or more £508 £75.66 £331 £49.30

The previous figures were set in the March 2005 budget, effective for VAT accounting periods starting after 30 April 2005.

Mileage Records - print our mileage record form to record your mileage and see VAT in mileage allowances for expenses paid to employees.

In respect of fuel purchased by the business calculate the recoverable VAT as -

VAT inclusive cost of fuel x business mileage / total mileage x 7 / 47 = recoverable VAT

See also the worked example in C&E VAT Notice 700/64: Motoring Expenses paragraph 8.4

See also VAT Planning, VAT Flat Rate Scheme, VAT Returns, VAT Bad Debt Relief, VAT Capital Goods Scheme, VAT Cars including Leased Cars, VAT Partial Exemption, VAT Registration Numbers, VAT Retail Schemes

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