- VAT road fuel scale charge rates will increase from 1 May 2025.
- Businesses that incur VAT on motoring expenses should be aware of these changes.
- The VAT road fuel scale charge applies to fuel used for both business and private journeys.
- Businesses can recover VAT on fuel used for business purposes.
- If fuel is used for private purposes, input tax recovery is restricted or output tax is payable as a fuel scale charge.
- Methods to calculate VAT reclaim on fuel include paying the fuel scale charge, recovering none of the VAT, or keeping detailed mileage records.
- The fuel scale charge is based on vehicle CO2 emissions and VAT accounting period length.
- Fuel for business vans is not subject to the scale charge unless private use is significant.
- New rates should be used from the start of the next prescribed accounting period.
Source: mha.co.uk
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
