It was announced in the Budget earlier this year that for VAT periods commencing on or after 1 May 2007 the fuel scale charges should be calculated on the basis of the car's carbon dioxide (CO2) emissions. A business with a VAT year of 30 September making normal quarterly returns will make returns for 1 October to 31 December, 1 January to 31 March, 1 April to 30 June and 1 July to 30 September. The first quarterly return commencing after 1 May will be the period 1 July to 30 September 2007 which is due for submission and payment by the end of October.

VAT fuel scale charges for 3 month periods

For monthly or annual VAT return periods separate tables are available.

In order to calculate HMRC’s guidance provides the following advice about obtaining CO2 emissions:

‘The Society of Motor Manufacturers and Traders Limited website contains information on CO2 emissions for vehicles from 1997. In addition, the Vehicle Certification Agency Car Fuel Data website allows you to search on specific cars, and further historical information is available at The Vehicle Certification Agency. 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 cc or less, use CO2 band 140 or below
• if its cylinder capacity exceeds 1,400 cc but does not exceed 2,000 cubic centimetres, use CO2 band 175
• if its cylinder capacity exceeds 2,000 cc, use CO2 band 240 or above.’

Please do get in touch if you would like help in this area.

Internet link: HMRC VAT scale charges  and HMRC motor expenses guide