VAT: Road Fuel Scale Charges - CIOT comments
The CIOT comments, sent to HMRC on 20 July 2012, on the technical paper dealing with Road Fuel Scale Charge changes to UK law to comply with EU law and streamlining the scheme.
On 25 April 2012, HMRC issued a Revenue and Customs Brief announcing their intention to arrange for new legislation dealing with the charge for fuel used for private use. That RCB can be found at http://www.hmrc.gov.uk/briefs/vat/brief1112.htm.
We have received via the JVCC a 'Technical Paper' dealing with the proposed changes. This is attached.
It should be noted that the proposals will allow businesses that keep detailed records to avoid a scale charge based on emissions. This will mean that the environmental objectives of a scale charge based on emissions may be affected although no doubt it will be minimal.
The new proposals will widen the dichotomy between the treatment of private fuel for direct tax purposes and that for indirect tax purposes. There is an argument that the proposal to allow the use of actual use based on mileage records should apply to both.
Our submission and the technical paper are available here in Adobe (pdf) format.
20 July 2012