The intention of fuel tax credits is to remove or reduce the cost of duty taxes on fuels used in business operations.
Different rates of credits apply depending on the fuel type and use. There are challenges for claimants due to complexities with:
- fuel excise rate indexation and road user charge adjustments
- apportioning fuel used on or off public roads – this affects the rates that can be claimed
- applying apportionment methodologies that are not supported with evidence
- the temporary reduction in the excise rate
- undertaking appropriate testing or evidence collection to support GPS or telematics technology-based claims.
We continue to manage the fuel tax credits gap by:
- developing clear guidance and promoting the use of simple calculation and record-keeping methods
- encouraging early engagement by advisors, GPS and telematic providers
- providing certainty via the product and class rulings system
- providing specific guidance when required to help claimants and advisers
- treating key compliance risks through audits and reviews - where appropriate
- supporting government policy changes through targeted communication and education
- monitoring claim trends and emerging risks and developing strategies to educate clients and advisers.
Our strategies are underpinned with the knowledge that supporting high levels of voluntary compliance is the best way to maintain the gap.
To help small businesses and taxpayers who are underclaiming, we created guides, calculators and Tips to get your fuel tax credits right tools that make it easy to claim the right amounts.
We will continue to identify opportunities to publish safe harbours to simplify claiming and reduce compliance costs. We will also continue to promote and encourage early engagement with advisers and software providers to improve the accuracy and reliability of credit claims via our product rulings system.
We continue to undertake compliance activity to address aggressive claiming, deliberate non-compliance or emerging risks with a particular focus on the detection and treatment of fake refund claims.
Tools and information
We continue to support taxpayers to get it right the first time. Our free tools and information include:
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fuel tax credit tools
- eligibility tool to check if you can claim
- calculator to work out the amount you can claim
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simplified fuel tax credits
- certainty around claiming
- records you need to keep and advice on apportionment methodologies
- Taxpayer Alert 2021/3 Fuel tax credit overclaims arising from aggressive marketing and use of GPS telematics technology products
- fuel schemes.