Constable VAT Consultancy LLP

Road Fuel Scale Charges (RFSC) - Possible claims for overpaid VAT

The RFSC is a simplification measure that allows businesses to account for VAT when business road fuel is put to private use.  The system uses a standardised scale charge to value private use fuel.  HMRC has issued a Technical Note and Revenue & Customs Brief 11/12 outlining the proposed changes to be made to the RFSC.

Changes from 1 April 2012

From 1 April 2012, all VAT registered businesses are required to submit VAT returns, for accounting periods begining on or after that date, online.  There is no longer be an option for businesses with a turnover below £100,000 to submit paper returns.

HMRC are reminding businesses who do not currently file their returns online to ensure they register for online filing as soon as possible by visiting www.online.hmrc.gov.uk.

The Chancellor announced in yesterday's Budget that secondary legislation will be introduced in summer 2012, supported by anti-forestalling provisions, to address long standing VAT anomalies and loopholes, with effect from 1 October 2012.  The measures:

• clarify the treatment of catering to ensure that all hot takeaway food is taxed;
• tax sports nutrition drinks to ensure that all sports drinks receive the same tax treatment;
• remove exemption from self-storage, except where this might assist in VAT avoidance;
• remove the zero-rate that currently applies to approved alterations of certain listed buildings;
• ensure that VAT applies to the rental of hairdressers' chairs;
• ensure that holiday caravans are taxed consistently at the standard-rate of VAT.

For more Budget information , please download our Budget Focus.

Buildings that are used by charities for non-business purposes, and/or as village halls, will be removed from the scope of the reduced-rate of VAT for the supply and installation of energy saving materials.  Legislation will be introduced in Finance Bill 2013. For more Budget information, please download our Budget Focus.