Scale charges definition

/skeɪl/ /tʃɑːdʒ/

What does Scale charges mean?

Scale charges are a way of simply apportioning the private use of fuel in cars provided by VAT registered persons to themselves or their employees. 

Output tax must be accounted for when VAT has been recovered in full on fuel paid for by the VAT registered person but some of that fuel is used privately (eg. journeys to and from a persons place of work). The fuel scale charge is a fixed output VAT charge which is based on the emissions of a car and is designed to cover the supply arising from the business providing and funding road fuel for private use in cars. The amount of VAT to be accounted for on the fuel scale charge is added to the output tax of the relevant VAT return.
VAT registered persons do not have to use the fuel scale charge. For example, they may keep detailed mileage records to separate business and private journeys and only recover VAT on the business element.

Discover our 0 Tax Guidance on Scale charges

Speed up all aspects of your legal work with tools that help you to work faster and smarter. Win cases, close deals and grow your business–all whilst saving time and reducing risk.

  Case studies

""Having that wealth of knowledge provided by Tolley at our fingertips is invaluable. It’s like having a technical partner available 24/7 and there was never any question of using a rival system. I wouldn’t trust any other provider.""

Tax Advisory Partnership

Access all documents on Scale charges