VAT fuel scale charge tables

THE new VAT fuel scale charges are published each year from May 01 and should be used from May accounting periods onwards. See table below.

The VAT fuel scale charges should be used by any SME business that supplies free fuel to its company car drivers and then recovers the VAT on the fuel costs.

The scale charges are then applied so HMRC can recover the private VAT element of the fuel.

As with most things company car related – such as the company car tax tables – the fuel scale charges are based on the CO2 emissions of the company cars you run which are banded in 5g/km steps from 120g/km or less to 225g/km or more.

The VAT fuel scale charges allow you to account for the VAT on free fuel in monthly, quarterly or yearly periods.

If your staff repay their private business mileage then there is no need to use the VAT fuel scale charge.

If you have a pool car that is used exclusively for business, then the VAT fuel scale charge does not apply.

Do I have to use the VAT fuel scale charge?

No. For small businesses that don’t want to spend the time working out VAT fuel scale charges, a simpler system exists: these companies should include the cost of the VAT as a net figure and then claim the net figure as a business expense minus a percentage of the private mileage.