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The fuel scale charge allows a business (primarily sole traders and partnerships) to reclaim the input VAT on all fuel expenses, and account for the private use element using the fuel scale charge.

The fuel scale charge will depend on the CO2 emission rate of the vehicle.

Therefore in some scenarios, it may be advantageous to use the fuel scale charge, whereas in other scenarios the input VAT reclaimable may be less than the output VAT payable on the fuel scale charge, therefore utilising the fuel scale charge would not be advisable.

The VAT road fuel scale charges are amended with effect from 1 May 2015. Businesses must use the new scales from the start of the next prescribed accounting period beginning on or after 1 May 2015.

Valuation table

The valuation table sets out the new scale charges (a VAT inclusive amount). This table must be operated in accordance with the notes to the table and these are set out below.

Description of vehicle: vehicles CO2 emissions figure

VAT inclusive consideration for a 12 month prescribed accounting period

VAT inclusive consideration for a 3 month prescribed accounting period

VAT inclusive consideration for a 1 month prescribed accounting period

120 or less

£536

£133

£44

125

£802

£200

£66

130

£857

£213

£70

135

£909

£227

£75

140

£965

£240

£80

145

£1,016

£254

£84

150

£1,072

£267

£88

155

£1,123

£281

£93

160

£1,179

£294

£97

165

£1,231

£308

£102

170

£1,286

£320

£106

175

£1,338

£334

£111

180

£1,393

£347

£115

185

£1,445

£361

£119

190

£1,501

£374

£124

195

£1,552

£388

£129

200

£1,608

£401

£133

205

£1,660

£415

£138

210

£1,715

£428

£142

215

£1,767

£441

£146

220

£1,822

£455

£151

225 or more

£1,874

£468

£155

Notes to the CO2 emission figures

Where the CO2 emission figure is not a multiple of 5, the figure is rounded down to the next multiple of 5 to determine the level of the charge.

For a bi-fuel vehicle which has 2 CO2 emissions figures, the lower of the 2 figures should be used. For cars which are too old to have a CO2 emissions figure, you should identify the CO2 band based on engine size. If its cylinder capacity (cc) is:

·         1,400 cc or less: use band 140

·         1,401 cc to 2,000 cc: use band 170

·         2,001 cc or above: use band 225 or more

 

Ensure that you are claiming the maximum VAT possible in relation to the fuel scale charge by contacting the team at Spirare to assess whether the fuel scale charge would be advantageous for your business.