The VAT Road Fuel Scale Charges have been amended with effect from 1st May. The new rates can be found here.

If a business is VAT registered and purchases road fuel for business use, but there is also private use of a vehicle, then an adjustment needs to be made to ensure that VAT is not reclaimed on the private element of the fuel consumed. To simplify this process, a business may use Scale Charges to add back a fixed sum to account for this private use. This can be done monthly, quarterly or yearly.

As is the same with car benefit, CO2 banding of the vehicle is used to dictate the amount of the Scale Charge to be applied.

However, for some businesses, claiming input VAT on fuel and then having to apply the Scale Charges may not be financially beneficial.

To see whether this would be applicable for you, contact us at Green & Co.

Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.