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
- If you supply free fuel to company car drivers – use the new tables
- If the CO2 emissions fall between bands, round down
- Bi-fuel cars with two CO2 emission figures should use the lower CO2 figure
- For older cars without a CO2 emission figure use band 140 for 1400cc or less; band 175 for 1401cc-2000cc; band 225 for 2001cc and above
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.
Business Motoring Award Winners 2024
Business Motoring Award Winners 2024
Business Motoring Award Winners 2024
Business Motoring Award Winners 2024
Business Motoring Award Winners 2024
Business Motoring Award Winners 2024
Business Motoring Award Winners 2024
Business Motoring Award Winners 2024
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.
Read how to apply the VAT fuel scale charges
Click here on how to apply the fuel scale charges here: How to apply the VAT fuel scale charge
VAT fuel scale charge 2018/19
| CO2 band | VAT fuel scale charge, 12 month period | VAT on 3 month period | VAT on 1 month period |
| 120 or less | £562 | £140 | £46 |
| 125 | £842 | £210 | £70 |
| 130 | £900 | £224 | £74 |
| 135 | £954 | £238 | £79 |
| 140 | £1013 | £252 | £84 |
| 145 | £1067 | £266 | £88 |
| 150 | £1125 | £280 | £93 |
| 155 | £1179 | £295 | £98 |
| 160 | £1,238 | £309 | £102 |
| 165 | £1,292 | £323 | £107 |
| 170 | £1,350 | £336 | £111 |
| 175 | £1,404 | £351 | £116 |
| 180 | £1,463 | £365 | £121 |
| 185 | £1,517 | £379 | £125 |
| 190 | £1,575 | £393 | £130 |
| 195 | £1,630 | £407 | £135 |
| 200 | £1,688 | £421 | £145 |
| 205 | £1,742 | £436 | £1,205 |
| 210 | £1,801 | £449 | £149 |
| 215 | £1,855 | £463 | £154 |
| 220 | £1,913 | £477 | £159 |
| 225+ | £1,967 | £491 | £163 |
Editor’s note: You should always take professional advice on company car policy. Your accountant, business adviser, or fleet management consultant will be able to help with applying the correct car tax allowances.
Full VAT fuel scale charge tables
You can find these on the HMRC website here
