What is a VAT fuel scale charge?
A VAT fuel scale charge is a standard output VAT adjustment for private motoring. It matters when a VAT-registered business buys road fuel, reclaims input VAT on that fuel, and the vehicle is also used privately. Instead of trying to measure every private mile and private litre, the business can use the published scale charge for the vehicle and accounting period.
The charge is not the amount of fuel bought and it is not an extra payment to the employee. It is an amount included in the VAT return to reflect private use. HMRC’s Motoring expenses notice 700/64 explains the broader treatment of road fuel and the available methods. A business should first confirm that it reclaimed VAT on fuel and that private use occurred. Where neither fact applies, the scale charge may not be required.
This page covers the tables effective from 1 May 2026 to 30 April 2027. The relevant table is determined by the start date of the prescribed VAT accounting period, not simply the date on which the return is submitted.
When should a business use the scale charge?
The scale charge is generally relevant where the business reclaims all VAT on fuel purchased for a car that has both business and private use. Private travel includes ordinary personal journeys and usually includes home-to-work travel unless a specific rule changes the treatment.
HMRC also permits other approaches. A business can choose not to reclaim VAT on any fuel for a vehicle, or it can keep sufficiently detailed records and reclaim only the VAT linked to business mileage. The right method depends on the records available and whether the administration is proportionate. The choice should be applied consistently and supported by invoices and mileage evidence.
Do not confuse the fuel scale charge with the advisory fuel rates used for employee mileage reimbursements. They answer different questions. The official GOV.UK fuel scale charge tool helps identify the scale charge itself. Where a vehicle is used only for business and private use is genuinely prohibited and prevented, retain evidence for that position rather than applying a charge automatically.
How do you choose the correct CO2 band?
Use the vehicle’s official carbon dioxide emissions figure in grams per kilometre. The figure may appear on the V5C registration certificate or other approved vehicle documentation. For the table, round the CO2 figure down to the nearest multiple of five. A figure of 154g/km therefore uses the 150 band, while 159g/km uses the 155 band.
Where no CO2 figure is available, the 2026 to 2027 table assigns a band by engine size. An engine of 1,400cc or less uses the 140 band. An engine above 1,400cc but below 2,000cc uses the 175 band. An engine of 2,000cc or more uses the 225-and-above band. Check the notes in the HMRC 2026 to 2027 fuel scale charge table before relying on an engine-size substitute.
Each vehicle normally has its own charge. A business with several privately used cars should not calculate one average band unless HMRC guidance expressly permits the chosen treatment.
What do the 2026 to 2027 tables show?
The official table provides three versions of the charge for each CO2 band. Use the 12-month value for an annual prescribed accounting period, the three-month value for a quarterly period, and the one-month value for a monthly period. Each row shows the VAT-inclusive charge, the VAT element, and the VAT-exclusive amount.
| Accounting period | VAT-inclusive charge | VAT to include | VAT-exclusive value |
|---|---|---|---|
| 12 months | £1,314 | £219.00 | £1,095.00 |
| 3 months | £328 | £54.67 | £273.33 |
| 1 month | £109 | £18.17 | £90.83 |
These values are taken from the table effective from 1 May 2026. They are an example for one band, not a universal rate. Always match the vehicle and period before entering the amount on the VAT return.
What does a quarterly worked example look like?
Assume a VAT-registered company reclaims VAT on all fuel for one company car. The car has an official CO2 figure of 154g/km and is available for private use throughout a quarterly VAT period beginning after 1 May 2026.
- Round 154 down to the 150g/km band.
- Select the three-month column because the VAT period is quarterly.
- Read the VAT-inclusive scale charge of £328.
- Include output VAT of £54.67 in the VAT calculation.
- Keep the VAT-exclusive value of £273.33 in the supporting working.
The business does not enter £328 as extra input VAT. The important figure for the VAT calculation is the stated VAT element. This example assumes the car is within the scheme for the whole period and that no special fact changes the treatment. Confirm the current row through the GOV.UK calculator and retain a copy of the table used.
Which records and checks should be kept?
Keep fuel VAT invoices, the vehicle registration or CO2 evidence, the accounting-period dates, the band selected, and the table version used. Record why the scale-charge method was chosen and whether any vehicle entered or left the arrangement during the period. The working should be clear enough for another person to reproduce the amount.
Review the method whenever the business changes vehicle, stops reclaiming VAT on fuel, removes private use, changes its VAT accounting period, or begins reimbursing employee fuel differently. Also check the table each May because HMRC publishes annual scale values that do not necessarily align with the 6 April tax-year start.
The safest workflow is simple. Identify private use, confirm the VAT recovery method, select the official CO2 band, select the correct accounting period, and post the listed output VAT. For technical cases involving partial exemption, mixed business activities or uncertain private-use evidence, use HMRC notice 700/64 and obtain tax advice where the amount is material.
Frequently asked questions
Do I use a VAT fuel scale charge if I reclaim no VAT on road fuel?
Normally no. The scale charge addresses private use where VAT on the fuel has been reclaimed. Keep records showing the method you chose and check HMRC guidance for unusual circumstances.
Is the charge based on private mileage?
The standard scale charge is based on the vehicle’s CO2 band and the VAT accounting period, not the actual number of private miles.
Which date determines the table?
Use the table applying to the prescribed accounting period. The 2026 to 2027 table applies to periods beginning on or after 1 May 2026 within its stated validity.
What if the car has no CO2 figure?
Use the engine-size substitute band in the notes to the official table and keep evidence of the engine capacity.
Can a business use a different method?
Yes. Depending on the facts, it may reclaim only business-use VAT or choose not to reclaim VAT on fuel. Records must support the treatment.
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Author: FinanceHub UK Editorial Team. Read our editorial policy.
Editorial status: Source checked and selected for indexing. This is an editorial check, not personalised professional advice or regulatory approval.
Sources checked: 3 August 2026. Next scheduled review: 10 July 2027.