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HMRC have published their annual update to the VAT Fuel Scale Charge rates. The new rates should be used for VAT periods beginning on or after 1 May 2021 and can be accessed via this link:
The quarterly rates can be found in section 2 of the notice under Quarterly Charges, and vehicle emission figures should be rounded down to the nearest multiple of 5.
As vehicle and consequently fuel use is likely to have returned to more normal levels with the relaxation in coronavirus restrictions, it is important you ensure that you calculate the VAT adjustment correctly. It may be that the number of employees with private fuel has changed since last year and you should regularly update the list of employees/cars on which the calculations are based.
In addition, don’t forget that the Fuel Scale Charge only accounts for the private use of fuel and you are required to make a separate VAT adjustment for the use of the car itself via the Demonstrator Scale Charges. No updates have been made to these rates for some time.
If you have any queries on these private use charges, please contact me at email@example.com.
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