Where a business vehicle is used privately and VAT is reclaimed on all road fuel, it is important that the appropriate Fuel Scale Charge is applied. The Fuel Scale Charge ensures a standardised VAT add back and is based on the CO2 emissions of the vehicle. Applying a Fuel Scale Charge makes things simpler, as you don’t need to maintain detailed mileage records.
From the 1st May 2019 the Fuel Scale Charge rates will change and the new rates can be found HERE
These new rates should be applied to VAT returns commencing on or after the 1st May 2019.
The Fuel Scale Charge is entered on your VAT return as follows:
- Box 1 – VAT element
- Box 6 – net element
Depending on your mileage the Fuel Scale Charge may exceed the VAT you wish to reclaim and a business may therefore decide not to reclaim any VAT on road fuel.
At Drummond Laurie we are always here to help and if you would like to know more about the VAT or other services we offer, please do not hesitate to get in touch.