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

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    Categories : Fleet matters, V.A.T.

    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


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    Categories : Fleet matters, Guest blogs, Uninsured Loss Recovery


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