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Where Taxpayers and Advisers Meet

Road Fuel Scale Charge

CG
Posts:202
Joined:Wed Aug 06, 2008 3:33 pm
Road Fuel Scale Charge

Postby CG » Wed Mar 04, 2020 1:23 pm

Hi

I have a couple of questions about the Road Fuel Scale Charge for reclaiming VAT on all Fuel for a car that has business and personal use in a self employed business.

I have previously been told that it is not possible to pay the fuel scale charge on a 'return by return' basis - ie only pay the charge in a VAT period when it would benefit the business. However I have been reading conflicting views about this and haven't been able to get a definitive answer from HMRC.

So my questions are:

Can the fuel scale charge be used on a 'return by return' basis?

If I wanted to start using the fuel scale charge can I start at any time?

Many thanks for any help on this.

les35
Posts:635
Joined:Wed Aug 06, 2008 3:09 pm

Re: Road Fuel Scale Charge

Postby les35 » Wed Mar 04, 2020 5:57 pm

There is no specific piece of legislation which prohibits use of the fuel scale charge in one VAT period, and then a different method (mileage calculation) in another period. But I advise clients to choose a method and stick with it; perhaps review every few years.
HMRC Notice 700/64, chapter 8 provides your alternatives and there is nothing specific about switching methods.

By all means change for each period, but the stress of corresponding with HMRC if and when they challenge it will out-weigh the benefit, I suggest.


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