VAT Fuel Scale Charge

Overview

If your business is registered for VAT and you give ‘free’ fuel to your company car drivers. The VAT Fuel Scale Charge is a simplified way of recovering the VAT on the private use of company supplied fuel.

Questions you may ask:

When is a VAT Fuel Scale charge made?
What is the amount of VAT as an Employer I need to pay for my drivers free private fuel?
How does the scale charge work?

How does it work?

You are allowed to reclaim all of the VAT you’ve paid on the fuel purchased provided that you then add back in the VAT (as output tax) on the scale charge appropriate to your vehicle when making your VAT return.

The European Commission has recently confirmed that the UK can
continue to use the fuel scale charge until at least 31 December 2020

	2019/20 (From 1st May 2019)
CO2 Emissions	Fuel Scale Charge 12 month period	Output VAT	VAT Exclusive Fuel Scale Charge
<120g/km	£592	£98.67	£493.33
125g/km	£886	£147.67	£738.33
130g/km	£947	£157.83	£789.17
135g/km	£1,004	£167.33	£836.67
140g/km	£1,066	£177.67	£888.33
145g/km	£1,123	£187.17	£935.83
150g/km	£1,125	£187.50	£937.50
155g/km	£1,241	£206.83	£1,034.17
160g/km	£1,303	£217.17	£1,085.83
165g/km	£1,360	£226.67	£1,133.33
170g/km	£1,421	£236.83	£1,184.17
175g/km	£1,478	£246.33	£1,231.67
180g/km	£1,540	£256.67	£1,283.33
185g/km	£1,597	£266.17	£1,330.83
190g/km	£1,658	£276.33	£1,381.67
195g/km	£1,715	£285.83	£1,429.17
200g/km	£1,777	£296.17	£1,480.83
205g/km	£1,834	£305.67	£1,528.33
210g/km	£1,895	£315.83	£1,579.17
215g/km	£1,952	£325.33	£1,626.67
220g/km	£2,014	£335.67	£1,678.33
>225g/km	£2,071	£345.17	£1,725.83

CO2 value is not a multiple of five - CO2 value is rounded down to the next multiple of five to determine the level of charge

Bi-Fuel vehicle - the lower of the two CO2 emission values is used

The information provided is based on existing and proposed legislation as at March 2020 (11th March 2020 UK Budget). Whilst every effort has been made to ensure that information given is accurate and not misleading, this information is intended to provide a quick reference to the current tax regulations relating to company vehicles and how they impact employers and employees. The content has been provided for informational purposes only and should not be relied on as a substitute for professional advice. No responsibility can be accepted by LetsTalkFleet Ltd for any loss or liability occasioned by any person acting on or refraining from action as a result of viewing this information.