Content
Reverse Charges
Beyond The Grave
Director's Two Hats
IHT Plan Fails
VAT And Cash
Amnesty International
An Inspector Calls
Losing A Bet
Caring Doctors
TAAR Brush
Made To Be Broken
Flat VAT
Safe Deposit
Tax On Gas
Working Late
Composite Companies
Excuses, Excuses
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If you buy fuel for business use, you can claim the cost as a business expense. If some of that fuel is then used for private motoring, there are tax consequences. A sole trader or partner has to add back some of the expenses; a company has to declare a benefit in kind for the employees. There's also a charge to VAT on the "deemed supply" of fuel - that applies in the same way to sole traders, partners and employees. For several years, the VAT charge has been based on a simple table of figures which depended on engine size, while the benefit in kind for employees depends on the carbon dioxide emissions rating of the car. Now VAT has "gone green" as well - but the figure you use is not exactly the same. You'll have to find out your CO2 rating for the first time if you are a sole trader or a partner - the income tax rules wouldn't have applied to you before - and then you'll have to look up the new VAT figure in a table. The different tax consequences for income tax, NIC and VAT - none of which are based on the actual amount of fuel you use - mean that it's hard to say whether it's better for the business to buy the fuel, or for private fuel to be always a private matter. If you're wondering which is best for you, we'll be happy to help.  |