VAT fuel scale charges

Produced by Tolley
VAT fuel scale charges

The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • VAT fuel scale charges
  • What are fuel scale charges?
  • How do you find the appropriate fuel scale charge?
  • How do you calculate the charge due?
  • Example
  • Records

What are fuel scale charges?

The VAT fuel scale charge is a simplified method that can be used by a business that funds both business and private mileage costs for employees to account for any output tax due on the private use of the vehicle. The charge was introduced to alleviate the need for the business to calculate the private element in order to account for output tax on the fuel used for private purposes. If the business uses the fuel scale charge, then it can recover all of the VAT incurred on the fuel purchased.

The fuel scale charge is only applicable to cars and not commercial vehicles.

How do you find the appropriate fuel scale charge?

The business will need to use the fuel scale charge rates produced by HMRC in order to calculate the amount of VAT that needs to be declared on the VAT return for each car.

It should be noted that the business will need to know the CO2 emissions figure for the vehicle in order to determine the correct fuel scale charge that needs to be applied. If the vehicle was registered after 2001, the CO2 emissions figure will be shown on the vehicle registration document (VC5). Where the CO2 emissions figure is not a multiple of five, the figure is rounded down to the next mult

Popular documents