Fuel Scale charges from 1 May 2010

27 03 2010

Guest blogger Robert Killington explains about the new fuel scale charges.

This article first appeared in Robert’s  excellent VATark Blog and is reprinted here with his kind permission.

For periods starting after 30 April 2010

The fuel scale charge applies to all business cars which are used for
private motoring. The following table sets out the fuel scale charges
for VAT periods commencing after 30 April 2010.

The amount listed under Scale Charge is the VAT inclusive amount. You need to subtract the VAT due to get the figure to include in Box 6 on your VAT Return.

For vehicles which do not have a CO2 emissions figure, you should identify the CO2 band based on engine size, as follows:

  • if its cylinder capacity is 1,400 cubic centimetres or less, use CO2 band 140 or below
  • if its cylinder capacity exceeds 1,400 cubic centimetres but does not exceed 2,000 cubic centimetres, use CO2 band 175
  • if its cylinder capacity exceeds 2,000 cubic centimetres, use CO2 band 235 or above.Whilst every effort has been made to ensure that the figures in the following tables are accurate you should still check that the figures are correct.

    •  

      12 Month return Three Month return One Month return
    CO2 Emissions Figure Scale Charge VAT due per vehicle Scale charge VAT due per vehicle Scale charge VAT due per vehicle
      £ £ £ £ £ £
    120 or below 570.00 84.49 141.00 21.00 47.00 7.00
    125 850.00 126.60 212.00 31.57 70.00 10.43
    130 850.00 126.60 212.00 31.57 70.00 10.43
    135 910.00 135.53 227.00 33.81 75.00 11.17
    140 965.00 143.72 241.00 35.89 80.00 11.91
    145 1020.00 151.91 255.00 37.98 85.00 12.66
    150 1080.00 160.85 269.00 40.06 89.00 13.26
    155 1135.00 169.04 283.00 42.15 94.00 14.00
    160 1190.00 177.23 297.00 44.23 99.00 14.74
    165 1250.00 186.17 312.00 46.47 104.00 15.49
    170 1305.00 194.36 326.00 48.55 108.00 16.09
    175 1360.00 202.55 340.00 50.64 113.00 16.83
    180 1420.00 211.49 354.00 52.72 118.00 17.57
    185 1475.00 219.68 368.00 54.81 122.00 18.17
    190 1530.00 227.87 383.00 57.04 127.00 18.91
    195 1590.00 236.81 397.00 59.13 132.00 19.66
    200 1645.00 245.00 411.00 61.21 137.00 20.40
    205 1705.00 253.94 425.00 63.30 141.00 21.00
    210 1760.00 262.13 439.00 65.38 146.00 21.74
    215 1815.00 270.32 454.00 67.62 151.00 22.49
    220 1930.00 279.26 468.00 69.70 156.00 23.23
    225 1985.00 287.45 482.00 71.79 160.00 23.83
    230 or above 1765.00 295.64 496.00 73.87 165.00 24.57

    Comments : Leave a Comment »
    Tags: , , ,
    Categories : Fleet matters, V.A.T.

    Mitigation of loss

    23 02 2010

    If you have an accident which is not your fault you are nevertheless obliged to keep your losses to a minimum. 

    An example of this is hiring another vehicle whilst your own may be driveable or allowing storage charges to accumulate at a garage when the vehicle has been written off.

    This also applies to inury related matters such as loss of earnings.   If the injuries such that the Claimant cannot continue in their chosen occupation, they will have to look for alternatives that they are physically capable of doing.


    Comments : Leave a Comment »
    Tags: , , , , ,
    Categories : Fleet matters, General accident matters, Write offs

    VAT recovery on accident claims

    11 02 2010

    Guest blogger Robert Killington (The Fun VAT Man) explains about VAT recovery in accident claims. 

    What’s the VAT situation for a VAT registered business that has to make an insurance claim for damage to one of it’s vehicles?

    Because a VAT registered business can recover the VAT it incurs on business expenses it is able to recover the VAT on the costs of repairing its vehicle. The insurance company will meet the cost of the repairs, less any excess, and the business will have to pay the excess plus the VAT on the repair costs.  The repairer will provide the business with an invoice for the repair costs plus VAT which the business will be able to include in its business records in the normal way. The VAT on the invoice will be credited to the business on its next VAT return.

    That’s the damage to the vehicle dealt with, but what about other expenses that might be covered by the insurance policy?

    Can you reclaim the VAT on those?

    Here I have to roll out my standard answer and that is: it depends.

    It depends on whether the expenses can be seen as legitimate business expenses on which the VAT can be recovered.  If the expense relates to, for example, personal injuries to an employee and the award of damages will be paid to the employee the business is unlikely to be able to recover the VAT and could reasonably expect these to be covered by its insurer.  Only where the cost relates to some expense of the business, e.g. uninsured losses such as hire of a replacement vehicle or the insurance excess, is the business able to recover the VAT on the legal costs.

    How does this affect a sole trader who is claiming compensation for injuries as the result of a car crash?

    Can they get the input tax back on the legal fees?  Probably not unless there can be established a clear connection between the costs incurred and the business run by the sole trader.

    All this means that if a VAT registered business, of whatever description, incurs expenses, including legal fees, that are covered by insurance the business is able to recover the VAT on those legal fees. The insurer will normally only pay out the VAT exclusive amount in such circumstances. It is therefore important to establish at the time a claim is made whether the VAT on the costs may be recovered.

    Ultimately the recovery of VAT on legal and other costs associated with a car crash depends on whether those costs are legitimate business expenses.

    Unfortunately I have to fall back on the age old comment that the outcome will depend on the facts of each individual case.

    Car Accident Aid is most grateful to Robert for his most helpful advice.  Robert has a wealth of knowledge on how to manage VAT.  You can meet him at 4Networking meetings in Crawley where he is the Group Leader and at various other 4Networking Events where he is the 4Sight speaker- on VAT of course!

    For more of Robert’s words of wisdom, view his VATark website


    Comments : Leave a Comment »
    Tags: , , , , ,
    Categories : Fleet matters, Guest blogs, Uninsured Loss Recovery

    Skype with a Webcam

    31 01 2010

    Kaslers Solicitors LLP is a firm wholly dedicated to working in the modern age.  In our RTA department over 90% of our clients have internet access so why not use its benefits to the max!

    Whilst we are always happy to see clients in our offices in Kent or Canary Wharf, an appointment can now be made for a one-to-one face to face meeting using Skype and a webcam.  If you are not already a Skype user, you can download it free of charge

    Then just book up an appointment in the usual way except that you can enjoy and a cup of coffee from the comfort of your own office and home

    No cost, no travel , no carbon footprint!


    Comments : Comments Off
    Tags: , , , ,
    Categories : Client Services, Fleet matters

    What happens when your employees are injured

    26 01 2010

    OK, so it wasn’t their fault – does it really matter to you? After all, even if they were off work for a month, you can get the wages you pay them back from the other driver’s – right? WRONG!

    Most companies large or small fall into this trap. Only your injured employee has the right to claim loss of earnings and any wages you pay them either contractually or out of the kindness of your heart cannot be recovered by you.  

    WHAT’S THE SOLUTION?  

    Any earnings paid by you can be recovered from the negligent driver but only if your contracts of employment provide for this. Ask your company solicitors’ employment department to draft the necessary wording and this could result in your company recovering substantial sums without your employee suffering financially. This can include all the wages you would normally be obliged to pay under the contract of employment.  

    Alternatively, if your contract of employment does not yet provide for this, you agree with your employee to pay them not a penny over their contractual entitlement but you can then enter into a loan agreement with them (preferably drafted by your lawyers) for the same amount as their wage (or any other amount to tide them over) on the basis that they will repay you when they are paid by insurers of the other driver. This must not however be paid as wages. It should be simply a repayable loan.  

    WHAT HAPPENS WHERE THE EMPLOYEE IS FULLY OR PARTLY TO BLAME

     If your employee caused the accident,  they cannot recover any loss of earnings, in which case nor will you, the employer. If however, fault is split between your employee and the other driver, they will each recover a percentage of their losses and normally (depending on the wording of your contract) you would only be entitled to recoup that same percentage of the wages paid. If  you are entering into a loan arrangement, you will need to consider carefully whether your employee can recover all the lost wages.

     In reality, motorcycle couriers are more prone to split liability accidents than van drivers.

    GET PROPER PROFESSIONAL ADVICE  

    Before embarking on any of these suggestions, get legal advice to ensure that the wording used protects you and your employee.

    If your employee is using the same solicitors as you (assuming there is no conflict of interest), the employee can sign a form so that wage loss is paid directly back to you.

    IF YOU WOULD LIKE ADVICE FOR YOUR FLEET OF VEHICLES (NO MATTER WHETHER YOU HAVE 2 OR 2000), USE OUR ON-LINE FORM TO ASK A QUESTION.

        


    Comments : 2 Comments »
    Tags: , , , ,
    Categories : Fleet matters, Personal Injury

    Arrow Light Haulage

    8 03 2009

    This is a You Tube presentation from the excellent Essex based courier company, Arrow Light Haulage


    Comments : 1 Comment »

    Categories : Fleet matters, Videos

    Protected: Uninsured loss recovery for fleets

    1 02 2009

    This post is password protected. To view it please enter your password below:



    Comments : Enter your password to view comments.

    Categories : Fleet matters

    Fleet Risk Management – A FREE Risk Assessment

    31 01 2009

    Regular guest blogger Nigel Grainger discusses a new service offering

    The Risk Management articles we have produced here cover numerous of areas in which the Corporate Manslaughter Legislation can affect the way you do business. We have discussed that you are at the mercy of your employees’ actions whilst they are away from your premises, where you have little or no direct control over what they do or how they act in your name. And that those very actions over which you may have no control could land you in prison for a lesser offence or financially embarrassed for Corporate Manslaughter.

    I know that some readers have found the articles and opinions a little worrying, so I thought that we would offer the readers of this blog the opportunity to have a FREE Fleet Risk Health assessment to confirm or allay any fears they may have.

    The idea of the Health assessment is to give you a clear understanding of your current position and will allow you to develop an action plan for your business to minimise the risk of prosecution for any offences in connection with your vehicle usage.

    In view of the seriousness of the area in which we work we are unable to devote time to those businesses who are not prepared to spend a little time on Risk Management, so the Health assessment should take you a good 20 minutes (maybe a bit longer) to complete, but once it has been submitted to us, we shall review your answers and prepare a report on where we think you comply and where, if at all, you may have areas of risk.

    To obtain your copy of our FREE Fleet Health assessment please send an email to us HERE and put FFHC and your company name in the message box.

    Nigel Grainger

    Senior Consultant

    Fleet Risk Consultants


    Comments : Leave a Comment »

    Categories : Fleet matters

    Driving licence checks

    25 01 2009

    Good advice from guest blogger, Nigel Grainger at Fleet Risk Consultants

    The first risk management task of the New Year for any business that uses vehicles is to check all the driving licences of its staff. This is the most basic thing you can do to ensure your drivers are legally entitled to drive your vehicles.

    You may be asking ‘Why do this the first week of January?’ this is because over the Christmas period anyone caught drink driving will have been processed and their licence revoked.

    One of the local Police forces near to me has, over the Christmas period caught 140 drink drivers. Now if we expand that across the other 51 forces in Britain that would equate to over 7,000 people who had a valid driving licence before Christmas and are starting the New Year unable to drive.

    In any time of rising unemployment people will be doing everything in their power to maintain their job and that may mean they ‘forget’ to tell you that they are no longer able to drive.

    It is your legal responsibility as an employer to ensure all your drivers are suitably licensed.

    If you want any help with this please call the team for advice on how to do it or to request a free resource to help you check your licences properly.

    Nigel Grainger

    Senior Consultant

    Fleet Risk Consultants


    Comments : Leave a Comment »

    Categories : Fleet matters

    Cabotage changes

    19 01 2009

    Guest blogger, Sarah Arrow of Essex Couriers and The Courier Shop Blog writes :-

    Last June the law surrounding Cabotage changed and Uk companies were allowed to use drivers returning to European companies to deliver their goods. A lot of industry people thought that was a good thing, myself included until I started examining the laws regarding corporate manslaughter act.

    Looking at in in more detail and reading and referring to an article on the Road Transport website, has left me in doubt that it’s not a good thing.

    Do you really save money? What happens in the event of an accident? Who is liable if a foreign driver subcontracting for you has breached the law?

    Subbing out work under cabotage rules can save on your costs, but who pays up if the foreign vehicle is not roadworthy or an accident occurs? Operators using cabotage rules to offload work on to foreign hauliers and save money are being warned they are setting themselves up for “astronomical” liability costs, unless they do their homework first. The rise in online freight exchanges for companies wanting to reduce empty running and subcontract work to minimise costs, coupled with escalating fuel prices, means using continental hauliers is seen as making good business sense.

    But transport lawyers say it is so difficult to bring foreign-based haulage companies before a UK court if they are involved in an accident while working on your behalf and it is very likely your customer will pursue you instead. And alarmingly, due to a legislative loophole, foreign companies remain outside of the scope of the Corporate Manslaughter Act. This means that if they are involved in a death on UK roads, you could find yourself facing manslaughter charges. Hauliers carrying out cabotage journeys in this country operate under the conditions of carriage used by the UK operator, which often are the Road Haulage Association’s own guidelines. This limits liability of the haulier to any claim made against it and prevents it having to pay out excessive amounts of money to the customer in the event of an accident.

    Obviously due diligence needs to be proved, and before subbing out work to a returning driving you should vet the company in question. The Haulier who agrees the job with the customer is liable and not a haulier in another country who is a third party sub contractor.

    It may be cheap in the short term, but the long term costs of not completing your vetting etc will put you out of business. You cannot claim limited liability if you do not have a system for checking those liabilities.

    What can you do to limit you liabilities?

    • Vet your subcontractors
    • Check their references
    • What’s their reputation in the industry like?
    • Do they have a high turnover of drivers? – a sure sign that the staff are not happy and the remainder of the team are making up the shortfall.
    • Keep accurate records that you have done this.

    It may take a bit of time, but it could save your business one day.


    Comments : Leave a Comment »

    Categories : Fleet matters

    « Previous Entries


    Follow

    Get every new post delivered to your Inbox.