VAT road fuel scale charges
HMRC operates a "simplification measure" allowing businesses to use a standardised scale charge to value private use of fuel. This saves businesses the need to keep detailed records of actual private mileage. Most businesses, particularly small and medium sized businesses, which do not keep detailed mileage records covering all journeys, use the road fuel scale charges scheme.
In the 2012 Budget it was announced that legislation was to be put in place to correct a defect in the rules covering the road fuel scale charges scheme, and the way in which VAT is charged on some private fuel provided to an employee for their private use. To this end new legislation will be introduced that will complete the process of updating the UK law on this issue. The updated law will not change the current table of charges, which will remain valid until 30 April 2014.
HMRC have published a draft Statutory Instrument that will enable the necessary changes. The draft legislation is open for comment until 21 October 2013.