HMRC’s intention is to
change significantly the VAT fuel scale charges
payable by businesses on the provision of fuel
for private motoring for their company car
drivers. The system of calculating the output
VAT charge on a simple cylinder banded table
is withdrawn for the businesses first VAT return
commencing after 1 May 2007.
The new 21 band table will obviously take
some getting used to and relies on knowing
the benefit in kind percentage which is linked
to the CO2 emissions of the car and the type
of engine. Under the benefit in kind system
there are discounts available for environmentally
friendly cars.
The output VAT charge for a quarter is found
by looking up the relevant percentage in the
table.
Internet link:
Budget
notes pages 131 to 133
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