JCT600 Vehicle Solutions Limited Fleet Tax Guide · 1 JCT600 Vehicle Solutions Limited Fleet Tax Guide 2018/19 Prepared in association with BCF Wessex Consultants Limited based upon

1

JCT600 Vehicle Solutions

Limited

Fleet Tax Guide

2018/19

Prepared in association with BCF Wessex Consultants Limited based upon legislation and announcements up to 1 December 2017, the date of publication of Finance (No2) Bill 2017-19, but also including announcements made in the

Draft Scottish Budget 14 December 2017.

2

Contents .......................................................................................................................................................................................... 1

Income tax – Rates ............................................................................................................................................................ 3

Income tax - Personal allowances ..................................................................................................................................... 3

National Insurance Contributions - Rates ......................................................................................................................... 4

National Insurance Contributions - Thresholds ................................................................................................................ 5

Corporation tax - Rates ..................................................................................................................................................... 6

Lease rental restriction ..................................................................................................................................................... 6

Capital allowances ............................................................................................................................................................ 7

Car benefit charge – Up to 5 April 2020 ........................................................................................................................... 8

Car benefit charge – From 5 April 2020 ............................................................................................................................ 9

Car fuel benefit charge .................................................................................................................................................... 10

Plug-in car grant .............................................................................................................................................................. 11

Van benefit charge .......................................................................................................................................................... 12

Van fuel benefit charge ................................................................................................................................................... 12

Plug-in van grant ............................................................................................................................................................. 13

Approved Mileage Allowance Payments (AMAPS) ......................................................................................................... 14

Advisory Fuel Rates (AFRs) .............................................................................................................................................. 14

Vehicle Excise Duty ......................................................................................................................................................... 15

VAT – Rates and Thresholds ............................................................................................................................................ 17

VAT on private fuel – Annual scale charges .................................................................................................................... 18

VAT on private fuel – Quarterly scale charges ................................................................................................................ 19

VAT on private fuel – Monthly scale charges.................................................................................................................. 20

Disclaimer ........................................................................................................................................................................ 21

3

Income tax – Rates

UK Rate of Income Tax

Tax payer 2018/19 2017/18

Rate Income Rate Income Basic 20% £11,851 to £46,350 20% £11,501 to £45,000 Higher 40% £46,351 to £150,000 40% £45,001 to

£150,000 Additional 45% Above £150,000 45% Above £150,000

These are the main rates which apply to earnings from employment, self-employment, pensions, foreign income, taxable benefits and income from property. Different rates may apply to unearned income, such as interest on savings and dividend income.

Scottish Rate of Income Tax For non-savings and non-dividend income the Scottish Parliament has the power to set all income tax

thresholds, except the personal allowance, as well as the Scottish Rate of Income Tax (SRIT) for Scottish

taxpayers

The income tax rates and bands for Scottish taxpayers are set out below.

Tax payer 2018/19 2017/18

Rate Income Rate Income Starter 19% £11,851 to £13,850 - - Basic 20% £13,851 to £24,000 20% £11,501 to £43,000 Intermediate 21% £24,001 to ££44,273 - - Higher 41% £44,274 to £150,000 40% £43,001 to £150,000 Top/Additional 46% Above £150,000 45% Above £150,000

The definition of a Scottish tax payer is based on where an individual resides not where they work, so if

an individual works in England but resides in Scotland the employer is obliged to apply the SRIT. HMRC

informs employers when they need to apply the SRIT by issuing a Scottish tax code and appropriate tax

tables.

Income tax - Personal allowances Allowances 2018/19 2017/18

Personal allowance 1, 2 £11,850 £11,500 Married couple’s allowances Transferrable allowance 3 £1,185 £1,150 Age related allowance 4, 5 - maximum amount £8,695 £8,445 - minimum amount £3,360 £3,260

1. Irrespective of age or date of birth, this allowance is reduced by £1 for every £2 of income over £100,000 until completely

withdrawn, leading to a marginal tax rate of 60% on income in the band from £100,000 to £123,700.

2. The personal allowance will increase to £12,500 by April 2020.

3. A spouse or civil partner is entitled to transfer up to 10% of their personal allowance to their spouse or civil partner,

provided neither partner is a higher or additional rate taxpayer, and neither was born before 6 April 1935.

4. Available to those born before 6 April 1935.

4

5. Tax relief for this allowance is restricted to 10% and the allowance is reduced by £1 for every £2 of income over £28,000

£28,900 (2017/18 - £28,000) subject to the minimum allowance. The married couple’s allowance is reduced after the

personal allowance.

National Insurance Contributions - Rates

Class 1 - Employed

Earnings 2018/19 2017/18

Employee Employer Employee Employer Below Lower Earnings Limit (LEL) Nil Nil Nil Nil Above LEL to Earnings Threshold (ET) 1 0% 0% 0% 0% Above ET to Upper Secondary Threshold (UST) 2

12% 0% 12% 13.8%

Above ET to Upper Earnings Limit (UEL) 12% 13.8% 12% 13.8% Above UEL 2% 13.8% 2% 13.8%

1. Although no NICs are payable, to protect an employee's entitlement to contributory benefits notional Class 1 NICs are

deemed to have been paid on earnings between the LEL and the ET. 2. Employers are not required to pay Class 1 NICs on earnings up to the Upper Secondary Threshold (UST) for any employee

aged under 21. Employers are not required to pay Class 1 NICs on earnings paid up to the Apprentice Upper Secondary

Threshold (AUST) to apprentices under the age of 25. As shown in the NIC Threshold tables the UST and AUST will be the

same as the UEL in 2018/19.

Class 1A and Class 1B - Employer

Earnings or benefits 2018/19 2017/18

Class 1A - Most taxable benefits, including car and fuel benefit charges 13.8% 13.8% Class 1B - Earnings in a PAYE Settlement Agreement and income tax thereon 13.8% 13.8%

Class 2 and Class 4 – Self employed

Income or profits 2018/19 2017/18

Class 2 1 - Below Small Profits Threshold (SPT) £0.00 £0.00 - Weekly flat rate above SPT £2.95 £2.85 Class 4 2 - Below Small Profits Threshold (SPT) 0% 0% - Between SPT and Lower Profits Limit (LPL) 0% 0% - Between LPL and Upper Profits Level (UPL) 9% 9% - Above UPL 2% 2%

1. In the 2017 Autumn Budget the government announced it will delay the abolition of Class 2 NICs for one year, until April 2019.

2. The government will reform Class 4 NICs so that self-employed individuals continue to build entitlement to the state pension and other contributory benefits following the abolition of Class 2 NICs.

Class 3 - Voluntary

Contributions 2018/19 2017/18

Class 3 - Weekly flat rate voluntary payment £14.65 £14.25

5

National Insurance Contributions - Thresholds

Class 1 – Employee and employer

Earnings 2018/19 2017/18

Weekly Monthly Annual Weekly Monthly Annual Lower Earnings Limit (LEL) £116 £503 £6,032 £113 £490 £5,876

Earnings Threshold (ET)

- Primary Threshold (PT) £162 £702 £8,424 £157 £680 £8,164

- Secondary Threshold (ST) £162 £702 £8,424 £157 £680 £8,164

Upper Secondary Threshold (UST) £892 £3,863 £46,350 £866 £3,750 £45,000

Apprentice Upper Secondary Threshold (AUST)

£892 £3,863 £46,350 £866 £3,750 £45,000

Upper Earnings Limit (UEL) £892 £3,863 £46,350 £866 £3,750 £45,000

Employment allowance 1

Allowance £3,000 £3,000 Apprenticeship levy 2

Allowance £15,000 £15,000

1. The annual employment allowance may be offset against every employer's Class 1 NICs but must be claimed via the normal payroll

process. The allowance is not available to companies of which a director is the sole employee.

2. The apprenticeship levy is set at a rate of 0.5% of an employer's annual pay bill and is collected via PAYE. As the annual allowance is

used to offset the payment of the levy, the levy is only paid by employers who's pay bills exceed £3 million per year.

Class 2 and Class 4 – Self employed

Income or profits 2018/19 2017/18

Annual Annual Class 2 - Small Profits Threshold (SPT) £6,205 £6,025

Class 4

- Small Profits Threshold (SPT) £6,205 £6,025

- Lower Profits Limit (LPL) £8,424 £8,164

- Upper Profits Limit (UPL) £46,350 £45,000

Other classes

Class 1A NICs are paid on amounts reported on Form P11D(b).

Class 1B NICs are paid on earnings included in a PAYE Settlement Agreement and income tax thereon.

6

Class 3 NICs are paid voluntarily by persons not liable for contributions, or who are excepted from Class 2 NICs

or whose contributions are insufficient to qualify for benefits.

Corporation tax - Rates Company rate 1,2 Profits Effective rate to

31/03/19 Effective rate to

31/03/18

Small Up to £300,000 19% 19% Marginal £300,001 to £1,500,000 19% 19% Main Above £1,500,000 19% 19%

1. The rate of corporation tax will be reduced to 17% from 1 April 2020. 2. It is proposed that from 1 April 2018 the rate of corporation tax in Northern Ireland will be reduced to 12.5%.

Lease rental restriction

From April 2018 – based on CO2 emissions

For contracts entered in to from April 2018 tax relief for leased cars will be limited according to the CO2

emissions as follows:

CO2 emissions Allowed rentals Disallowed rentals

110 g/km or below 100% 0% Above 110 g/km 85% 15%

For corporation tax purposes the thresholds noted above will apply for cars leased on or after 1 April 2018. For income tax purposes the thresholds will apply for cars leased on or after 6 April 2018.

From April 2013 – based on CO2 emissions

For contracts entered in to from April 2013, tax relief for leased cars is limited according to the CO2 emissions

as follows:



For corporation tax purposes the thresholds noted above apply for cars leased on or after 1 April 2013. For income tax purposes the thresholds apply for cars leased on or after 6 April 2013.

From April 2009 to March 2013 – based on CO2 emissions

For contracts entered in to between April 2009 and March 2013, tax relief for leased cars is limited according

to the CO2 emissions as follows:



Pre April 2009 – expensive car leasing disallowance

The previous legislation will apply until the end of the contract for cars leased prior to April 2009. A proportion

of the lease rental is disallowed using the formula:

7

½ (Retail price - £12,000) Retail price

Capital allowances

Capital allowances for cars - based on CO2 emissions

1 April to 31 March First year allowance 1 Main pool Special rate pool

Emissions (g/km)

Allowance Emissions (g/km)

Allowance Emissions (g/km)

Allowance

2018 to 2021 50 or below 100% 51 to 110 18% Above 110 8%



2012 to 2013 110 or below

100% 111 to 160 18% Above 160 8%

2009 to 2012 110 or below

100% 111 to 160 18% Above 160 8%

1. Since April 2013 leasing companies cannot claim first year allowances for cars they buy to lease to customers.

Capital allowances available via the main or special rate pools are calculated on a reducing balance basis, but

there is no longer any balancing allowance or charge on disposal, unless a car has been allocated to a single

asset pool for a sole trader or partner because it is used partly for private purposes. Hence there will no

longer be 100% recovery of tax relief on commercial depreciation over the life of a car on the fleet.

Capital allowances for vans

Until 31 March 2018, a business that purchases a van with zero CO2 emissions is eligible for a 100% first year

allowance provided the business does not claim the government's Plug-In Van Grant.

Any other van should be treated as plant and machinery and allocated to the main pool, where it will be eligible

for writing down allowances at 18%, unless an Annual Investment Allowance is claimed.

Annual Investment Allowance

Most businesses may claim the annual investment allowance on expenditure on plant and machinery up to

the maximum allowance of £200,000.

Businesses may claim the allowance on both general and special rate plant and machinery. It is effectively a

100% allowance that applies to most qualifying expenditure up to the annual cap, with expenditure on cars

being the most important exception. Commercial vehicles, such as vans, should qualify for the annual

investment allowance.

Where qualifying expenditure exceeds the annual cap tax relief will be given under the normal capital

allowance regime via the main or special rate pools, with writing down allowances being given at 18% or 8%

respectively, on the reducing balance basis.

8

Car benefit charge – Up to 5 April 2020 Appropriate percentage for calculating the taxable benefit of petrol, hybrid, electric, bi-fuel and other

alternatively fuelled company cars.

CO2 emissions 2018/19 2019/20

g/km % % 0 – 50 13 16 51 – 75 16 19 76 – 94 19 22 95 – 99 20 23

100 – 104 21 24 105 – 109 22 25 110 – 114 23 26 115 – 119 24 27 120 – 124 25 28 125 – 129 26 29 130 – 134 27 30 135 – 139 28 31 140 – 144 29 32 145 – 149 30 33 150 – 154 31 34 155 – 159 32 35 160 – 164 33 36 165 – 169 34 37 170 – 174 35 37 175 – 179 36 37

180 and above 37 37

From 6 April 2018 all cars propelled solely by diesel are subject to a 4% supplement unless they meet the

Real Driving Emissions Step 2 (RDE2) standard. However, the maximum appropriate percentage cannot

exceed 37%.

For agreements entered in to from 6 April 2017, if a cash allowance is offered but a company car is selected

should the CO2 emissions of the company car exceed 75 g/km the car benefit charge will be the greater of

the annual cash allowance and the cash equivalent of the company car. When calculating the cash

equivalent to be compared against the cash allowance employee contributions should be ignored.

Similar rules apply for salary sacrifice.

9

Car benefit charge – From 5 April 2020 Appropriate percentage for calculating the taxable benefit of petrol, hybrid, electric, bi-fuel and other

alternatively fuelled company cars.

CO2 emissions Zero emission range 2020/21

g/km Miles % 0 2

1 – 50 130 and above 2

70 – 129 5

40 – 69 8

30 – 39 12 Under 30 14

51 – 54 15 55 – 59 16 60 – 64 17 65 – 69 18 70 – 74 19 75 – 79 20 80 – 84 21 85 – 89 22 90 – 94 23 95 – 99 24

100 – 104 25 105 – 109 26 110 – 114 27 115 – 119 28 120 – 124 29 125 – 129 30 130 – 134 31 135 – 139 32 140 – 144 33 145 – 149 34 150 – 154 35 155 – 159 36

160 and above 37 From 6 April 2018 all cars propelled solely by diesel are subject to a 4% supplement unless they meet the

Real Driving Emissions Step 2 (RDE2) standard. However, the maximum appropriate percentage cannot

exceed 37%.

For agreements entered in to from 6 April 2017, if a cash allowance is offered but a company car is selected

should the CO2 emissions of the company car exceed 75 g/km the car benefit charge will be the greater of

the annual cash allowance and the cash equivalent of the company car. When calculating the cash equivalent

to be compared against the cash allowance employee contributions should be ignored.


10

Car fuel benefit charge

All cars 2018/19 2017/18

Fuel benefit charge multiplier £23,400 £22,600

The fuel benefit charge is calculated by multiplying the fuel benefit charge multiplier by the car’s appropriate

percentage; that is the CO2 emissions derived percentage used to calculate the car benefit charge, including

any diesel supplement.

The fuel benefit charge is reduced to nil if the employee is required to make good the full cost of all private

fuel, and does so; employer provided private fuel may either be reimbursed at cost or by using HMRC's

Advisory Fuel Rates.

A proportionate reduction is made if the company car is only available for part of the year, where private fuel

ceases to be provided part-way through a year, or where the benefit of the car is shared.

No fuel benefit charge can arise if an employer provides a facility to supply or directly supplies electricity for

a car as HMRC does not regard electricity to be a fuel.

For agreements entered in to from 6 April 2017, if a cash allowance is offered but the fuel benefit is selected

should the CO2 emissions of the company car exceed 75 g/km the fuel benefit charge will be the greater of

the annual cash allowance and the cash equivalent of the fuel benefit.


11

Plug-in car grant

Level of grant available 2018/19 2017/18

Percentage of purchase price 35% 35% Maximum grant £4,500 £4,500

Grant entitlement Until March 2018 the maximum grant is limited according to the following criteria.

Category CO2 emissions (g/km)

Zero emission range (miles)

Purchase price/RRP Maximum grant

1 Less than 50 At least 70 Any price £4,500

2 Less than 50 Between 10 and 69 £60,000 or greater £0

Otherwise £2,500

3 Between 50 and 75

At least 20 £60,000 or greater £0

Otherwise £2,500

Category 2 and 3 cars are only eligible if the Recommended Retail Price is less than £60,000 and the full purchase price (including number plates, VED and VAT, but excluding optional extras, delivery charges and the first registration fee) is also below £60,000. In the 2017 Autumn Budget the Government committed an additional £100 million funding for the plug-in car grant, extending availability until 2020. The government will also continue to provide grants to help car owners to install a dedicated charge point at home. The electric vehicle home charge scheme (EVHS) offers £500 per installation, which on average should cover around half of the installation cost. From 23 November 2016 100% first year allowances are available to businesses on expenditure incurred on electric charge point equipment. The allowance will expire on 31 March 2019 for corporation tax purposes and 5 April 2019 for income tax purposes. Eligibility

To be eligible to apply for the grant a car must: -

be new, with a vehicle category 'M1';

emit no more than 75 g/km;

be able to travel a minimum of 70 miles between charges if electric or have a minimum electric range of 10 miles if a plug-in hybrid;

be able to reach a speed of 60 miles per hour or more;

have an appropriate 3 years/60,000-mile warranty, and 3-year battery and drive train (clutch, transmission, drive shafts, U-joints and differential) warranty, with an option to extend the battery warranty for an extra 2 years;

have either a standard 5-year warranty on the battery and electric drive train, or evidence to show reasonable battery performance after 3 years of use;

comply with UN-ECE regulations to prove electrical safety;

have either a European Commission safety approval or acceptable evidence of levels of safety as judged by international standards.

12

Van benefit charge

Vans with CO2 emissions greater than zero 2018/19 2017/18

Van benefit charge £3,350 £3,230

The van benefit charge is reduced to nil if there is only insignificant private use, the terms under which the van is made available to an employee restrict its private use or it is a pooled van.

Until 5 April 2022 the van benefit charge for a zero emission van will be a percentage of that applied to a conventionally powered van as follows:

Vans with zero CO2 emissions Proportion of van benefit charge

2016/17 20% 2017/18 20% 2018/19 40% 2019/20 60% 2020/21 80% 2021/22 90% 2022/23 100%

The van benefit charge is reduced if the van is not used for the whole tax year, or, if someone else also uses

the van for private travel or if something is paid by the employee for using the van privately.

For agreements entered in to from 6 April 2017, if a cash allowance is offered but a company van is selected

the van benefit charge will be the greater of the annual cash allowance and the cash equivalent of the van

benefit. When calculating the cash equivalent to be compared against the cash allowance employee

contributions should be ignored.


Van fuel benefit charge

All vans 2018/19 2017/18

Van fuel benefit charge £633 £610 The van fuel benefit charge is reduced to nil if the employee is required to make good the full cost of all

private fuel, and does so, fuel is only provided for business travel, the insignificant or restricted private use

conditions are met, or if the van cannot emit any CO2 emissions when driven.

A proportionate reduction is made if the company van is only available for part of the year, where private

fuel ceases to be provided part-way through a year, or where the benefit of the van is shared.

For agreements entered in to from 6 April 2017, if a cash allowance is offered but the van fuel benefit is

selected the van fuel benefit charge will be the greater of the annual cash allowance and the cash equivalent

of the van fuel benefit.


13

Plug-in van grant

Level of grant available 2018/19 2017/18

Percentage of purchase price 20% 20% Maximum grant £8,000 £8,000

The availability of the plug-in van grant was extended in November 2016 and now includes larger commercial vehicles with a gross weight exceeding 3½ tonnes. The availability of the grant will be reviewed once 5,000 grants have been processed or in March 2018, whichever is the earlier.

Eligibility

To be eligible to apply for the grant a van must: -

be new, with a vehicle category of ‘N1′, ‘N2’ or ‘N3’;

emit less than 75 g/km;

be able to travel a minimum of 60 miles between charges if electric or have a minimum electric range of 10 miles if a plug-in hybrid;

be able to reach a speed of 50 miles per hour or more;

have an appropriate 3 years/60,000-mile warranty, and 3-year battery and drive train (clutch, transmission, drive shafts, U-joints and differential) warranty, with an option to extend the battery warranty for an extra 2 years;

have either a standard 5-year warranty on the battery and electric drive train, or evidence to show reasonable battery performance after 3 years of use;

comply with UN-ECE regulations to prove it is electrically safe; and

have either a European Commission safety approval or acceptable evidence of levels of safety as judged by international standards.

14

Approved Mileage Allowance Payments (AMAPS)

Vehicle type Up to 10,000 miles Above 10,000 miles

Car or van 45p 25p Motor cycle 24p 24p Cycle 20p 20p

The above statutory mileage rates are used to calculate the approved amount for mileage allowance payments, that is the maximum amount that can be paid free of income tax under the AMAPs legislation. These rates are also used to calculate the amount of any mileage allowance relief (MAR) available to an employee.

There is an additional exemption from tax for payments to employees using cars or vans (but not other kinds of vehicle) on business journeys for carrying as passenger’s fellow employees for whom the travel is also business travel. The passenger payment rate is 5p per mile.

For NIC purposes the qualifying amount, that is the amount that can be paid without the need to apply NIC, is 45p per mile regardless of the business mileage undertaken. Therefore, the 10,000-mile threshold does not apply for the purposes of NIC.

Advisory Fuel Rates (AFRs)

Engine size Petrol 1 LPG

1400cc or less 11p 7p

1401cc to 2000cc 14p 9p

Over 2000cc 21p 14p

Diesel 1

1600cc or less 9p

1601cc to 2000cc 11p

Over 2000cc 13p

1. Hybrid cars are treated as either petrol or diesel cars for these purposes.

These rates apply to all journeys on or after 1 December 2017. The rates are reviewed four times a year. Any changes will take effect at the beginning of each calendar quarter – on 1 March, 1 June, 1 September and 1 December and will be published on the HMRC website shortly before the date of change.

For one month from the date of change, employers may use either the previous or new current rates, as they choose. Employers may therefore make or require supplementary payments if they wish, but are under no obligation to do either.

HMRC will also accept the figures in the table for VAT purposes though employers will need to retain receipts in line with current legislation.

15

Vehicle Excise Duty

For cars registered after 31 March 2017 the following rates apply from 1 April 2018.

2018/19 2017/18

CO2 emissions First year rate 1, 2 Standard rate 2, 3 First year rate 1, 2 Standard rate 2, 3

(g/km) £ £ £ £

0 0 0 0 0

1 - 50 10 140 10 140

51 - 75 25 140 25 140

76 - 90 105 140 100 140

91 - 100 125 140 120 140

101 - 110 145 140 140 140

111 - 130 165 140 160 140

131 - 150 205 140 200 140

151 - 170 515 140 500 140

171 - 190 830 140 800 140

191 - 225 1,240 140 1,200 140

226 - 255 1,760 140 1,700 140

Over 255 2,070 140 2,000 140

1. A car propelled solely by diesel, registered on or after 1 April 2018 that does not meet the Real Driving Equivalent (RDE) Step 2 standard, will be subject to a fist year rate equivalent to the band above the actual emissions of the car, up to the maximum of £2,070 for 2018/19.

2. An alternative fuel discount of £10 is available for alternatively powered cars, including hybrids. 3. All cars, including those with zero emissions, with a list price greater than £40,000 will be subject to a £310 annual supplement

on top of the standard rate for the first 5 years.

For cars registered between 1 March 2001 and 31 March 2017, the following rates apply from 1 April 2018.

2018/19 2017/18

Band 1, 2, 3 CO2 emissions Standard rate Standard rate

g/km £ £

A Up to 100 0 0

B 101 - 110 20 20

C 111 - 120 30 30

D 121 - 130 120 115

E 131 - 140 140 135

16

F 141 - 150 155 150

G 151 - 165 195 190

H 166 - 175 230 220

I 176 - 185 250 240

J 186 - 200 290 280

K 4 201 - 225 315 305

L 226 - 255 540 520

M Over 255 555 535

1. From 1 April 2018 cars manufactured before 1978 will be exempt from paying VED under the rolling exemption for cars

constructed more than 40 years ago .

2. An alternative fuel discount of £10 is available for alternatively powered cars, including hybrids.

3. The rates for alternatively powered cars and other kinds of vehicle can be found at the following website

https://www.gov.uk/vehicle-tax-rate-tables. The rates above only apply to cars that have been type approved in category M1

and registered on the basis of CO2 emissions measured in grams per kilometre (g/km) driven. These details are shown on the

registration certificate (V5C).

4. Band K includes cars that have CO2 emissions over 225g/km but were registered before 23 March 2006.

Cars registered before 1 March 2001

Engine size 2018/19 2017/18

Not over 1549 cc £155 £150

Over 1549 cc £255 £245

Light goods vehicles

Category 2018/19 2017/18

Light goods vehicle 1 £250 £240

Euro 4 light goods vehicle 2 £140 £140

Euro 5 light goods vehicle 3 £140 £140

1. Registered on or after 1 March 2001 and not exceeding 3,500 kg.

2. Registered between 1 March 2003 and 31 December 2006 and not exceeding 3,500 kg.

3. Registered between 1 January 2009 and 31 December 2010 and not exceeding 3,500 kg.

https://www.gov.uk/vehicle-tax-rate-tables

17

VAT – Rates and Thresholds Rate 2018/19 2017/18

Standard 20% 20%

Reduced 5% 5%

Zero 0% 0%

Exempt N/A N/A

Thresholds 2018/19 2017/18

VAT registration £85,000 £83,000

VAT de-registration £83,000 £81,000

18

VAT on private fuel – Annual scale charges

Businesses must use the following VAT fuel scale charges from the start of their next prescribed accounting

period beginning on or after 1 May 2017.

CO2 emissions Fuel scale charge1 VAT on

fuel scale charge VAT exclusive

fuel scale charge

g/km £ £ £ 120 or less 563..00 93.83 469.17

125 842.00 140.33 701.67 130 901.00 150.17 750.83 135 955.00 159.17 795.83 140 1,013.00 168.83 844.17 145 1,068.00 178.00 890.00 150 1,126.00 187.67 938.33 155 1,180.00 196.67 983.33 160 1,239.00 206.50 1,032.50 165 1,293.00 215.50 1,077.50 170 1,351.00 225.17 1,125.83 175 1,405.00 234.17 1,170.83 180 1,464.00 244.00 1,220.00 185 1,518.00 253.00 1,265.00 190 1,577.00 262.83 1,314.17 195 1,631.00 271.83 1,359.17 200 1,689.00 281.50 1,407.50 205 1,743.00 290.50 1,452.50 210 1,802.00 300.33 1,501.67 215 1,856.00 309.33 1,546.67 220 1,914.00 319.00 1,595.00

225 or more 1,969.00 328.17 1,640.83

1. Where the CO2 emissions are not a multiple of five, the figure is rounded down to the next multiple of five to determine the

level of the charge.

For a bi-fuel vehicle the lower of the two CO2 emissions figures should be used.

For cars which are too old to have a CO2 emissions figure identify the CO2 band by reference to the car’s engine size as

follows:-

- cylinder capacity of 1,400 cc or less – use CO2 band 140;

- cylinder capacity exceeds 1,400 cc but does not exceed 2,000 cc – use CO2 band 175;

- cylinder capacity exceeds 2,000 cc - use CO2 band 225 or above.

19

VAT on private fuel – Quarterly scale charges

Businesses must use the following VAT fuel scale charges from the start of their next prescribed accounting period

beginning on or after 1 May 2017.



fuel scale charge

g/km £ £ £ 120 or less 140.00 23.33 116.67

125 211.00 35.17 175.83 130 224.00 37.33 186.67 135 238.00 39.67 198.33 140 252.00 42.00 210.00 145 267.00 44.50 222.50 150 281.00 46.83 234.17 155 295.00 49.17 245.83 160 309.00 51.50 257.50 165 323.00 53.83 269.17 170 337.00 56.17 280.83 175 351.00 58.50 292.50 180 365.00 60.83 304.17 185 379.00 63.17 315.83 190 393.00 65.50 327.50 195 408.00 68.00 340.00 200 422.00 70.33 351.67 205 436.00 72.67 363.33 210 449.00 74.83 374.17 215 463.00 77.17 385.83 220 478.00 79.67 398.33

225 or more 492.00 82.00 410.00





follows:-




20

VAT on private fuel – Monthly scale charges

Businesses must use the following VAT fuel scale charges from the start of their next prescribed accounting

period beginning on or after 1 May 2017.



fuel scale charge

g/km £ £ £ 120 or less 46.00 7.67 38.33

125 70.00 11.67 58.33 130 74.00 12.33 61.67 135 79.00 13.17 65.83 140 84.00 14.00 70.00 145 88.00 14.67 73.33 150 93.00 15.50 77.50 155 98.00 16.33 81.67 160 102.00 17.00 85.00 165 107.00 17.83 89.17 170 111.00 18.50 92.50 175 116.00 19.33 96.67 180 121.00 20.17 100.83 185 125.00 20.83 104.17 190 131.00 21.83 109.17 195 136.00 22.67 113.33 200 140.00 23.33 116.67 205 145.00 24.17 120.83 210 149.00 24.83 124.17 215 154.00 25.67 128.33 220 159.00 26.50 132.50

225 or more 163.00 27.17 135.83





follows:-




21

Disclaimer

This guide is based upon legislation and announcements made up to 1 December 2017, the date of

publication of Finance (No2) Bill 2017-19, but also including announcements made in the Draft Scottish

Budget 14 December 2017.

The guide reflects our understanding of tax law and practice as at the date of publication but is not a complete

and definitive guide and users are advised that UK tax law is subject to frequent and unpredictable change.

This guide is published with the understanding that JCT600 Vehicle Solutions Limited is not engaged in

providing legal or professional services. The information contained in this guide does not constitute tax

advice and users are advised that they should always obtain such professional advice before taking action,

or refraining from taking action, on the basis of this information.

Every effort has been taken to compile the contents of this guide accurately and carefully. However, JCT600

Vehicle Solutions Limited cannot accept any responsibility or liability to any person in respect of anything

done or mitted to be done by any such person in reliance, partly or wholly, on any part or on the whole

contents of this guide.

All rights reserved. No part of this guide may be reproduced or distributed in any form or by any means, or

stored in a database or retrieval system, without the prior written permission of JCT600 Vehicle Solutions

Limited.

Official material is reproduced under the terms of the Open Government Licence (see

www.nationalarchives.gov.uk/doc/open-government-licence).

Documents

JCT600 Vehicle Solutions Limited Fleet Tax Guide · 1 JCT600 Vehicle Solutions Limited Fleet Tax Guide 2018/19 Prepared in association with BCF Wessex Consultants Limited based upon