Budget 2010 – VAT Fuel Scale Charges
New VAT fuel scale charges have been announced. The changes amend the VAT scale charges for taxing private use of road fuel to reflect changes in fuel prices. The changes will also amend the table of CO2 bands to maintain alignment with those used for direct tax purposes.
The new fuel scale charges must be used by companies from the start of their next prescribed accounting period beginning on or after 1 May 2010.
An updated version of HMRC’s Notice 700/64 VAT: Motoring Expenses, including the revised figures for all categories of vehicle will be available shortly.
These new fuel scale rates continue to encourage the use of cars with low CO2 emissions.