New VAT Fuel Scale Charges – Use From 1st May 2010

Ray Stewart General, Tax Matters, VAT Leave a Comment

Here is some more “good” news in the run up to the general election next week…

Are you a business that provides private fuel for your employees?  If so, you must apply the new VAT Fuel Scale Charges detailed below from the 1st May 2010.

This means any VAT period that starts on or after 1st May 2010.

These scale charges are a reduction of the input tax claimed on the fuel used for private motoring and work hand in hand with the P11D taxable benefit for private fuel provided to employees. 

Yes – they have gone up again – substantially.

The new quarterly charges are (figures are inclusive of VAT):[private_basic]

CO2 band VAT fuel scale charge, 3 month period, £
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

The above figures are for quarters (3 month periods).  If you make annual or monthly VAT returns the figures can be found on the H M Revenue & Customs website here.

This is just another example of stealth taxes at work as these are a significant increase on the old new rates that came into force just 1 year ago (11.9% just on the lowest 120 or less band) – good old Gordon Brown – by the way, if a staunch labour supporter is labelled a bigot – what does he call the rest of us who don’t vote for him???


Ray Stewart
I am a qualified Certified Practising Accountant having passed my final exams way back in 1981. I actually can’t believe that was 37 years ago!! Anyway, I am now in my 60’s and I have been running my own business since May 1983. And before you ask, no, I have never regretted a moment of it! Part of the membership requirements of my professional body now dictate that I spend quite a lot of time on “CPD” - continuing professional education (one of their better ideas) - and over the last two years I decided to study business growth and marketing. I have learnt such a lot and that knowledge has radically changed my old “accountants” approach to business. It has made such a difference to the way I work and operate I feel that I just have to pass on this knowledge. It is simply too powerful to hold back!! - but I will try and do it in simple terms rather than expecting you to spend hours, as I had to, working through the difficult language that trainers seem to use to pass on their concepts. I hope you find the blog a useful resource and interesting place to visit as the months pass. I will do my best to keep up the flow - but if there are any topics you would like me to cover, then please let me know. Ray Stewart
Ray Stewart
Ray Stewart

Latest posts by Ray Stewart (see all)

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.