The Fuel Scale Charge simplifies the process of accounting for VAT on private usage of fuel. It basically provides for a fixed amount each VAT period to adjust for VAT on road fuel claimed where there is also private usage of the vehicle.
The rates change every year and for the 12 months from 1 May 2021 the details are available on the HMRC website here. The rates are dependent on the Co2 emissions of each vehicle.
As an alternative to paying the scale charge, no VAT should be claimed on fuel. An exercise can be undertaken to determine the most beneficial option – to reclaim VAT and pay the scale charge or not reclaim VAT. Contact us if you would like to know your breakeven miles and the best option going forward.
