VAT Fuel Scale Charge: Who Qualifies and What You Get
Learn if your business can reclaim VAT on all fuel costs by paying a flat-rate scale charge based on your vehicle's emissions.
This scheme allows VAT-registered businesses to reclaim the tax paid on all fuel used by company vehicles, even when those vehicles are used for private travel.
Who it's for
This is for businesses that are registered for VAT and use company vehicles for both business trips and private travel.
What you get
You gain the ability to reclaim the VAT paid on all fuel used in your company vehicles.
What it costs you
Instead of tracking every single private mile, you pay a flat-rate scale charge. This charge is determined by the CO2 emissions of your vehicle.
The catch to know
The math behind the scale charge can be quite complex. For many people, it is often simpler and more efficient to just claim the standard Mileage Allowance instead.
How to apply
- Determine if your vehicle's emissions make the scale charge cost-effective.
- Calculate your required scale charge amount.
- Include the charge in your regular VAT return.
- Consult the official government website for current rates and guidance.