Broadsteady Ltd v Revenue and Customs (VAT - INPUT TAX : Fuel for private use) [2016] UKFTT 96 (TC) (16 February 2016)

Broadsteady Ltd v Revenue and Customs (VAT - INPUT TAX : Fuel for private use) [2016] UKFTT 96 (TC) (16 February 2016)

The vehicles were not allocated to the employees for private use within the meaning of section 56 VATA 1994 during the relevant periods; any private use was merely incidental or non-existent, and after April 2012, the employees were home-based so travel from home to office was not private mileage. Therefore, the fuel scale charge does not apply.

Citation
[2016] UKFTT 96 (TC)
Parties
Appellant: Broadsteady Limited; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
16 February 2016
Procedural Posture
VAT Appeal / First Tier Tribunal (tax Chamber) Decision
Outcome
Appeal allowed in relation to vehicles driven by Mrs Cox and Ms Jones; balance of appeal withdrawn.
Legal Topics
VAT, Input Tax, Fuel Scale Charge, Private Use of Company Vehicles, Section 56 VATA 1994
Tax Law VAT Input Tax Fuel Scale Charge Private Use of Company Vehicles Section 56 VATA 1994

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Parties

Broadsteady Limited

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

VAT Appeal / First Tier Tribunal (tax Chamber) Decision

Legal Issues

  1. 1 Whether vehicles were allocated to employees for private use under section 56 VATA 1994
  2. 2 Whether any private mileage occurred in the vehicles in question
  3. 3 Whether the fuel scale charge applies

Ratio Decidendi

The vehicles were not allocated to the employees for private use within the meaning of section 56 VATA 1994 during the relevant periods; any private use was merely incidental or non-existent, and after April 2012, the employees were home-based so travel from home to office was not private mileage. Therefore, the fuel scale charge does not apply.

Court Disposition

Appeal allowed in relation to vehicles driven by Mrs Cox and Ms Jones; balance of appeal withdrawn.

Orders

  • Assessments for fuel scale charge in relation to vehicles driven by Mrs Cox and Ms Jones set aside.