If VAT is reclaimed on road fuel and the vehicle has any element of private usage, an adjustment is needed in each VAT return
The VAT fuel scale charge is the method businesses in the UK use to calculate the VAT they owe on fuel for business vehicles used for private purposes.
This allows businesses to account for the VAT amount without keeping detailed mileage records and is generally based on the CO2 emissions figure of the car.
These new rates apply from 1 May 2024 until 30 April 2025. Ensure you use the revised figures. You can find them using the link below.
Here is a simple example:
A high-emission car with 225g/CO2 or over requires a quarterly adjustment to the VAT return of £613 gross including VAT or £102.17 VAT.
https://www.gov.uk/guidance/vat-road-fuel-scale-charges-from-1-may-2024-to-30-april-2025
