Commentary

RCB/33/13 VAT—withdrawal of partial exemption concession in relation to Road Fuel Scale Charges (RFSCs) – reminder of withdrawal and need to consider action

Part V16 Forms and other HMRC material

RCB/33/13 VAT—withdrawal of partial exemption concession in relation to Road Fuel Scale Charges (RFSCs) – reminder of withdrawal and need to consider action

RCB/33/13 VAT—withdrawal of partial exemption concession in relation to Road Fuel Scale Charges (RFSCs) – reminder of withdrawal and need to consider action

Revenue & Customs Brief, Issue 33. 4 November 2013

Purpose of this Brief

The purpose of this Brief is to remind taxpayers that the partial exemption concession on Road Fuel Scale Charges (RFSCs) will be withdrawn with effect from 1 January 2014. Taxpayers who currently use the concession need to take action if they are to continue to achieve a fair result following withdrawal.

Who should read this brief

Partly exempt taxpayers who use the RFSCs and the related partial exemption concession.

Background

RFSCs are an optional way of calculating VAT on deemed supplies created when taxpayers allow business road fuel to be used for private journeys. They avoid the need to keep detailed mileage records to accurately calculate private usage.

Where taxpayers are partly exempt and VAT on road fuel is treated as residual declaring RFSCs can lead to unfair results. This is because output tax will be declared on the full value of

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