HMRC introduced changes to the VAT road fuel scale on 1 May 2021.
Businesses will need to use the new scale from the start of their next prescribed accounting period, beginning on or after 1 May 2021.
The valuation rate tables:
- Set out the new scale charges (a VAT inclusive amount)
- Show the VAT to be charged if you account for VAT on an annual, quarterly or monthly basis
- Must be operated in accordance with the notes to the valuation table
Notes to the CO2 emission figures
Please note that you will need to check your car’s CO2 emissions figure if you cannot get this from your log book.
Where the CO2 emission figure is not a multiple of five, the figure is rounded down to the next multiple of five to determine the level of the charge.
For a bi-fuel vehicle which has two CO2 emission figures, the lower of the two 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 your vehicle’s cylinder capacity is:
- 1,400cc or less: use CO2 band 140
- 1,401cc to 2,000cc: use CO2 band 175
- 2,001cc or above: use band 225 or more
Using the table
You need to choose the correct road fuel charge based on the CO2 emission and the length of your VAT accounting period (either one, three or 12 months).
You will also need to apportion the fuel scale charge if you change car during the accounting period or if at the end of the period, you do not own or have not been allocated the car.
You need to work out how much of the accounting period you used each car for and record this as a percentage of the accounting period. You must apply this percentage to each road fuel scale charge to get a total figure.
For more information about amendments to the VAT road fuel scale. Please head to the gov. website.
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