VAT Fuel Scale Charges apply when the entire amount of VAT you pay on fuel is reclaimed via your input VAT. An output VAT charge is then made via the VAT Fuel Scale Charge. It also follows from this that if your company vehicles are not used for private usage, there’s no need to consider Fuel Scale Charges. The scale charge is calculated according to a car’s CO2 emissions.
HMRC has issued details of the updated VAT fuel scale charges which apply from the beginning of the next prescribed VAT accounting period starting on or after 1 May 2019. Click here to view.
VAT registered businesses use the fuel scale charges to account for VAT on private use of road fuel purchased by the business.
Please do get in touch for further advice on this or other VAT matters.