(This note is not part of the Order)

VAT is payable if road fuel of a business is used for private motoring. The VAT due must be calculated using flat-rate values related to engine type and size3.

This Order increases those flat-rates by an average of 18.5 per cent for diesel vehicles and 21 per cent for those using other fuels4.

The new rates apply to any relevant accounting period starting after 5th April 20005.