New HMRC VAT road fuel scale charges for 2012/13

Author: Ralph Morton

HMRC has just announced the new fuel scale charge for 2012/13 – it’s vital if your business supplies free fuel to your company car drivers.

Now, of course, your employee who benefits from the company car and the free fuel provided will have to pay the benefit in kind tax on that.

But there’s a little more taxation to go. You can claim for all the VAT on the fuel provided – without the need to laboriously work out what was for business and private usage.

However, the VAT-man gets the private element back by applying the HMRC’s VAT fuel scale charges.

The new VAT fuel scale charges for 2012/13 apply to all accounting periods beginning on 01 May 2012 or from that point onwards.

Like company car tax, the fuel scale charges are based on CO2 emissions and rise in steps of 5% from 120g/km or less to 225g/km and over. If the company car in question has CO2 emissions between bands, just round down.

The VAT can be accounted for either monthly, quarterly or yearly – all three scale charges are shown below.

What if the company car is only used for business?

If there is no private usage – and the company car is always left at the office or works premises – then the full amount of VAT on fuel can be recovered. You don’t need to apply the fuel scale charges.

I’m a small business with a few cars – this looks very complicated. Do I have to use it too?

No, quite simply. HMRC is happy for a simpler approach for smaller businesses. Don’t account for any of the VAT – and just use the total amount as a business expense (subject to the percentage of private usage).

We have some bi-fuel cars – which CO2 figure do we use?

For bi-fuel company cars, use the lower of the CO2 emission figures when applying the fuel scale charge.

Our company cars are too old to have CO2 emission figures. What should I do?

This is simple enough. If the company car has an engine capacity of up to 1.4-litres, then use the 140g/km CO2 band in the VAT fuel scale charge list. If the engine size is between 1.4 to 2.0 litres, then use the 17g/km CO2 band. And for company cars over 2.0-litres then use the 225g/km fuel scale band.

Road fuel scale charge 2012/13 – 1 month period

C02 band	Vat fuel scale charge, 1 month period	Vat on 1 month charge, £	VAT exclusive 1 month charge, £
120 or less	52.00	8.67	43.33
125	78.00	13.00	65.00
130	84.00	14.00	70.00
135	89.00	14.83	74.17
140	94.00	15.67	78.33
145	99.00	16.50	82.50
150	105.00	17.50	87.50
155	110.00	18.33	91.67
160	115.00	19.17	95.83
165	120.00	20.00	100.00
170	126.00	21.00	105.00
175	131.00	21.83	109.17
180	136.00	22.67	113.33
185	141.00	23.50	117.50
190	147.00	24.50	122.50
195	152.00	25.33	126.67
200	157.00	26.17	130.83
205	162.00	27.00	135.00
210	168.00	28.00	140.00
215	173.00	28.83	144.17
220	178.00	29.67	148.33
225 or more	183.00	30.50	152.50

Road fuel scale charge 2012/13 – 3 month period

C02 band	Vat fuel scale charge, 3 month period	Vat on 3 month charge, £	VAT exclusive 3 month charge, £
120 or less	157.00	26.17	130.83
125	236.00	39.33	196.67
130	252.00	42.00	210.00
135	268.00	44.67	223.33
140	283.00	47.17	235.83
145	299.00	49.83	249.17
150	315.00	52.50	262.50
155	331.00	55.17	275.83
160	346.00	57.67	288.33
165	362.00	60.33	301.67
170	378.00	63.00	315.00
175	394.00	65.67	328.33
180	409.00	68.17	340.83
185	425.00	70.83	354.17
190	441.00	73.50	367.50
195	457.00	76.17	380.83
200	472.00	78.67	393.33
205	488.00	81.33	406.67
210	504.00	84.00	420.00
215	520.00	86.67	433.33
220	536.00	89.33	446.67
225 or more	551.00	91.83	459.17

Road fuel scale charge 2012/13 – 12 month period

C02 band	Vat fuel scale charge, 12 month period ADVERTISEMENT	Vat on 12 month charge, £	VAT exclusive 12 month charge, £
120 or less	665.00	110.83	554.17
125	1000.00	166.67	833.33
130	1065.00	177.50	887.50
135	1135.00	189.17	945.83
140	1200.00	200.00	1000.00
145	1270.00	211.67	1058.33
150	1335.00	222.50	1112.50
155	1400.00	233.33	1167.67
160	1470.00	245.00	1225.00
165	1535.00	255.83	1279.17
170	1600.00	266.67	1333.33
175	1670.00	278.33	1391.67
180	1735.00	289.17	1445.83
185	1800.00	300.00	1500.00
190	1870.00	311.67	1558.33
195	1935.00	322.50	1612.50
200	2000.00	333.33	1666.67
205	2070.00	345.00	1725.00
210	2135.00	355.83	1779.17
215	2200.00	366.67	1833.33
220	2270.00	378.33	1891.67
225 or more	2335.00	389.17	1945.83

Editor’s note: You should always take professional advice on company car policy. Your accountant, business adviser, or fleet management consultant will be able to help with the correct company car tax allowance.