HMRC have produced some of
the tables but not the final VAT fuel scale
charges which are due to come into effect on
1 May 2007. Businesses will have to use the
new scale charges from the start of their first
accounting period beginning on or after this
date. HMRC are announcing the change early
to allow businesses time to familiarise themselves
with the new charging structure and make any
necessary IT system changes.
The existing system, which is based on the
engine size and fuel type of a car, will be
replaced by a VAT fuel scale charge based solely
on the CO2 emissions of the car. The new table,
which mirrors that used for benefit in kind
purposes, will have 21 bands with 5g/km of
CO2 increments. HMRC have published an outline
of the table but have not as yet put any amounts
in the table which will be finalised following
Budget 2007.
HMRC state that this change is not intended
as a revenue raising measure and that the change
to a CO2 based system should be revenue neutral
overall.
We have also included a link which will enable
you to check the CO2 emissions of most cars.
Internet Links:
HMRC
Brief and CO2 emissions
data
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