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HMRC internal manual

VAT Government and Public Bodies

From
HM Revenue & Customs
Updated
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Other local authority activities: miscellaneous (N to Z): road fuel scale charges

A section 33 body (see VATGPB4000) may provide an employee, or other person, with road fuel or reimburse them for fuel used. This is as an alternative to a mileage allowance (see VATGPB8785) to cover any official use. Where this relates to the use of a car road fuel scale charges will apply if the car is used both for official activities of the section 33 body and privately.

Under section 56 of the VAT Act 1994 any supply of road fuel by a taxable person is a business supply. This leads to scale charges (under section 57) if the authority does not sell fuel for private use to the driver for at least the price it paid.