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VAT fuel scale charge: 2026 tables and how to calculate

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The VAT fuel scale charge is an optional flat-rate method that lets your business reclaim all input VAT on fuel purchases, provided you declare the published scale charge as output tax on your VAT return. No mileage logs. No journey-by-journey records. Just the right CO2 band, the right table, and the right box on your return.

Here is what to do right now:

  • Check the GOV.UK valuation table for VAT road fuel scale charges from 1 May 2026 to 30 April 2027 and use it from the first prescribed accounting period beginning on or after 1 May 2026.
  • Find your car’s CO2 emissions from the V5C vehicle log book or the DVLA vehicle enquiry service.
  • Round the CO2 figure down to the nearest multiple of five.
  • Choose your accounting period — monthly (1 month), quarterly (3 months), or annual (12 months) — and pick the matching scale charge from the GOV.UK table.
  • Add the VAT element of the scale charge to Box 1 of your VAT return as output tax, then reclaim your fuel input VAT in Box 4 as normal.

You can use the GOV.UK fuel scale charge tool to work out the precise figure for your vehicle.

Key takeaways

The VAT fuel scale charge is the most practical method for most UK businesses with private car fuel use: pay the published flat-rate output tax, reclaim all fuel input VAT, and keep a simple record of each car’s CO2 band and period dates.

Point Details
Use the 2026–27 GOV.UK table Apply the table for any prescribed accounting period beginning on or after 1 May 2026.
Round CO2 down to nearest five Always round down, not to the nearest multiple — 163 g/km becomes 160 g/km.
VAT element goes to Box 1 Use the VAT-rate table figure, not the VAT-inclusive valuation amount, for output tax.
Cars only, not vans The scale charge applies to cars; commercial vehicles require mileage or allocation records.
CWABC handles the calculation I prepare VAT returns including scale charge figures and cloud-accounting setup for UK businesses.

Table of Contents

How the VAT fuel scale charge works and when you would use it

The scale charge is a flat-rate output tax amount set by HMRC and linked to your car’s CO2 emissions band. Pay it, and you are permitted to reclaim all the VAT on your business fuel purchases without separating private from business mileage. That is the core bargain: a fixed charge in exchange for administrative simplicity.

It applies only to cars. Vans and other commercial vehicles have no equivalent simplified method — for those, you must use mileage records or another allocation approach to separate private from business fuel use.

Businesses most commonly choose the scale charge in these situations:

  • Company cars with private use where the employer pays for all fuel, including private journeys.
  • Sole traders or directors who use one car for both business and personal trips and prefer not to maintain a mileage log.
  • Small fleets where the administrative cost of tracking individual journeys outweighs the VAT saving from the actual-use method.
  • Employer-funded fuel where employees use company cars privately and the business wants a clean, auditable output-tax figure.

The trade-off is real. The scale charge is calculated on CO2 band, not actual fuel spend, so a car with low private mileage may end up paying more output tax than the actual private-fuel VAT would require. For high-mileage private users, the charge is often good value. For someone who rarely uses the car privately, it can cost more than it saves. The choose-between-methods section below covers this decision in detail.

How to calculate your fuel scale charge step by step

Follow these steps each time you prepare a VAT return that includes private fuel use.

Step 1: find and round the CO2 figure

Locate the car’s CO2 emissions in grams per kilometre (g/km) from the V5C log book. If the V5C is unavailable or does not show the figure, use the DVLA vehicle enquiry service. Round the figure down to the nearest multiple of five. A car showing 163 g/km becomes 160 g/km for table-lookup purposes.

Step 2: select the scale charge from the GOV.UK table

Open the 2026–27 VAT road fuel scale charges table and find the row matching your rounded CO2 band. Choose the column for your VAT return period: 12 months, 3 months, or 1 month.

The table provides two figures for each band and period:

Table column What it shows
Valuation table (VAT-inclusive) The total scale charge including VAT — the gross amount
VAT-rate table The VAT element only — the figure that goes to Box 1 as output tax

Step 3: separate the VAT element

The VAT-rate table does this work for you. The VAT element shown is the output tax to include in Box 1. The difference between the VAT-inclusive charge and the VAT element is the VAT-exclusive amount, which you may record in your accounts as a cost.

Worked example (quarterly return, mid-range CO2 band):

Suppose your car has a CO2 figure of 163 g/km, rounded down to 160 g/km. Using the 2026–27 GOV.UK table for a quarterly (3-month) return:

  1. Locate the 160 g/km row in the valuation table.
  2. Read the 3-month VAT-inclusive charge from the table.
  3. Read the corresponding VAT element from the VAT-rate table.
  4. Add the VAT element to Box 1 of your VAT return as output tax.
  5. Reclaim all fuel input VAT in Box 4 as normal.

Pro Tip: Always use the current year’s table. The 2026–27 figures apply from the first prescribed accounting period beginning on or after 1 May 2026. Using last year’s table is one of the most common errors HMRC spots on review.

The numbered checklist for each return period:

  1. Confirm the car’s CO2 figure and round down to the nearest multiple of five.
  2. Open the GOV.UK 2026–27 scale charge table.
  3. Find the correct CO2 band row.
  4. Select the column matching your return period (1, 3, or 12 months).
  5. Note the VAT element from the VAT-rate table.
  6. Add that VAT element to Box 1 as output tax.
  7. Claim fuel input VAT in Box 4 as normal.
  8. Record the CO2 band, the car registration, and the table reference in your records.

Where to find the CO2 figure and how to handle special cases

Primary sources for CO2

  • V5C vehicle log book: the first place to check. The CO2 figure appears on the document and is the primary source HMRC expects you to use.
  • DVLA vehicle enquiry service: use this when the V5C is unavailable, has been lost, or does not show a CO2 figure. The service returns the registered CO2 figure for the vehicle.
  • Rounding rule: always round down, never up. 163 g/km becomes 160 g/km; 159 g/km becomes 155 g/km.

Per HMRC’s internal manual VIT55700, the rounding-down rule and the use of V5C or DVLA as sources are both mandatory requirements, not optional guidance.

Dual-fuel vehicles

For a car that runs on two fuel types (for example, a petrol-electric hybrid with a CO2 figure for each mode), use the lower of the two CO2 figures to select the scale charge band.

Pre-1997 cars with no CO2 figure

Vehicles registered before 1 March 1997 often have no CO2 figure on record. For these, HMRC applies cylinder-capacity rules rather than CO2 bands. Check the HMRC internal manual for the applicable table, as the calculation differs from the standard CO2-band approach.

Change of car during the accounting period

If you change cars part-way through a VAT period, you have two options:

  • Apportion by time: calculate the scale charge for each car based on the number of days it was used during the period, then add the two amounts together.
  • Use the higher scale: apply the scale charge for the higher CO2 band for the whole period. This is simpler administratively and HMRC accepts it as an alternative to apportionment.

Multiple cars

Where a business runs several cars with private fuel use, apply the scale charge separately for each car and add the VAT elements together for the VAT return. Keep a record showing each car’s registration, CO2 band, and the period it was in use.

How to show the fuel scale charge on your VAT return

The mechanics are straightforward once you know which boxes are affected.

  • Box 1 (output tax): add the VAT element of the scale charge here. This is the figure from the VAT-rate table, not the VAT-inclusive valuation figure.
  • Box 6 (value of sales): include the VAT-exclusive value of the scale charge (the VAT-inclusive amount minus the VAT element) in the total value of outputs.
  • Box 4 (input tax): reclaim all VAT on fuel purchases here as normal. The scale charge removes the need to restrict this to business use only.
  • Box 7 (value of purchases): include the value of fuel purchases as normal.

The GOV.UK fuel scale charge guidance confirms that paying the scale charge as output tax entitles you to full recovery of input VAT on fuel purchases — the two entries work together.

For a clear explanation of how VAT-return boxes work in practice, the VAT return guide for small businesses covers each box in plain English.

Recordkeeping checklist:

  • CO2 band and source (V5C or DVLA) for each car.
  • Car registration number and dates of use within each VAT period.
  • The GOV.UK table reference used (year and period column).
  • A note of any car changes and how apportionment was calculated.
  • Fuel purchase receipts and VAT invoices to support the input-tax claim.
  • A record of the decision to use the scale charge (a simple note in your accounts file is sufficient).

Good records protect you if HMRC ever queries the return. Accurate bookkeeping is the simplest way to stay HMRC-ready without last-minute stress.

Worked monthly and annual examples using GOV.UK figures

These examples use the structure of the GOV.UK 2026–27 tables. Always verify the exact figures for your CO2 band from the current GOV.UK table before completing your return.

Example 1: monthly return

  1. Car CO2: 163 g/km, rounded down to 160 g/km.
  2. Return period: 1 month.
  3. Open the 2026–27 GOV.UK valuation table, locate the 160 g/km row, read the 1-month VAT-inclusive charge.
  4. Open the VAT-rate table for the same row and period; read the VAT element.
  5. Add the VAT element to Box 1 as output tax.
  6. Add the VAT-exclusive value (VAT-inclusive minus VAT element) to Box 6.
  7. Reclaim all fuel VAT in Box 4.

Example 2: annual return, car changed mid-period

  1. Car A: CO2 160 g/km, used for 8 months of the 12-month period.
  2. Car B: CO2 200 g/km, used for the remaining 4 months.
  3. Option A (apportionment): take the 12-month VAT element for 160 g/km, multiply by 8/12; take the 12-month VAT element for 200 g/km, multiply by 4/12; add the two results together for Box 1.
  4. Option B (higher scale): apply the 12-month VAT element for the 200 g/km band for the whole year. Simpler, but likely costs slightly more output tax.
  5. Reclaim all fuel input VAT in Box 4 regardless of which option you choose.

Both options are accepted by HMRC under VIT55700. Choose based on whether the time saving of Option B outweighs the small additional output tax.

When to use the scale charge versus accounting for actual private fuel

Three methods are available to any VAT-registered business with private fuel use in a company car:

  • Use the scale charge: pay the flat-rate output tax, reclaim all fuel input VAT. Simple, predictable, no mileage records needed.
  • Account for actual private fuel: charge employees for the exact cost of private fuel and account for VAT on that amount. Requires accurate records of private mileage and fuel costs.
  • Claim no input VAT on fuel: avoid the scale charge entirely by not reclaiming any VAT on fuel purchases. Zero administration, but you lose the input-tax recovery.

When the scale charge tends to work well:

  • High private mileage relative to the CO2 band charge — the flat rate becomes good value.
  • Small fleets where maintaining mileage logs for every driver is impractical.
  • Businesses that want clean, predictable VAT figures each period.
  • Sole traders and directors who use one car for both purposes and prefer simpler bookkeeping.

When the actual-charge method may be better:

  • Very low private mileage — the scale charge may cost more in output tax than the actual private-fuel VAT would.
  • Employees are charged for private fuel at or close to cost — if the amount charged covers the VAT, the scale charge could be unnecessary.
  • Partially exempt businesses: the scale charge is calculated on the assumption of full input-tax recovery. If your partial-exemption method restricts how much input VAT you can recover, the scale charge may not deliver the expected benefit. Partly exempt traders may need to adjust the charge to reflect their actual recovery rate.

Decision checklist:

  • Is private mileage genuinely low? Consider the actual-charge method or no-claim option.
  • Do you charge employees for private fuel? Compare the VAT on the charge against the scale charge cost.
  • Are you partially exempt? Take advice before choosing the scale charge.
  • Do you have capacity to maintain mileage logs? If not, the scale charge removes that burden.
  • Is your fleet larger than a handful of cars? The administrative saving grows with fleet size.

For broader tax-planning context, the small business tax planning guide covers related decisions that affect VAT and direct tax together.

Practitioner tips and common mistakes to avoid

After preparing VAT returns for sole traders and small businesses across Kent and remotely throughout the UK, these are the errors that come up most often with the scale charge.

Common mistakes:

  • Wrong CO2 band: using the manufacturer’s marketing figure rather than the registered figure from the V5C or DVLA. Always use the official source.
  • Failing to round down: rounding to the nearest five rather than always rounding down. The rule is unambiguous — round down.
  • Forgetting apportionment: when a car changes mid-period, some businesses apply the new car’s scale charge for the whole period. That overstates output tax and misrepresents the return.
  • Confusing VAT-return boxes: adding the VAT-inclusive scale charge to Box 1 instead of the VAT element only. Box 1 takes the VAT element from the VAT-rate table, not the gross figure.
  • Applying the scale charge to vans: the scale charge applies only to cars. Vans and commercial vehicles require mileage records or another allocation method.
  • Using last year’s table: the GOV.UK tables are updated annually. Using the 2024–25 or 2025–26 figures for a period starting on or after 1 May 2026 is incorrect.

Pro Tip: Set up a simple spreadsheet or a dedicated tag in Xero, QuickBooks, or FreeAgent for each company car. Record the registration, CO2 band, and the period start and end date. When the car changes, log the date immediately — apportionment is straightforward when the dates are already recorded.

For recordkeeping that holds up under HMRC scrutiny, good tax management practice starts with consistent, dated records rather than reconstructed ones.

If you would prefer not to manage this yourself, I can check your CO2 bands, prepare the scale charge calculation, and include it correctly on your VAT return. Get in touch via the CWABC contact page.

A practical perspective on the scale charge for small businesses

The scale charge gets a mixed reception from small business owners, and I understand why. On paper, paying output tax you might not strictly owe feels counterintuitive. In practice, for most sole traders and small limited companies with one or two cars and regular private use, it is the sensible choice.

The alternative — tracking every private journey, calculating the fuel cost per mile, and accounting for VAT on the exact private-fuel amount — is genuinely burdensome. HMRC designed the scale charge precisely to reduce that burden, and the system works as intended when you apply it to the right vehicles with the right CO2 band.

My practical approach is to assess the likely private mileage at the start of each tax year and compare it roughly against the annual scale charge cost. For most clients with meaningful private use, the scale charge wins on simplicity. For those with very low private mileage, the no-claim option often makes more sense than either method. The key is making a deliberate, documented choice rather than defaulting to whichever approach feels easiest in the moment.

How CWABC can help with your VAT fuel scale charge

Sorting out the scale charge is one of those tasks that looks simple until you hit a mid-period car change, a partially exempt position, or a fleet with mixed CO2 bands.

CWABC

As an AAT-qualified bookkeeper and accountant based in Hildenborough near Tonbridge, I prepare VAT returns for sole traders, limited companies, and small employers across Kent and remotely throughout the UK. That includes identifying the correct CO2 band, applying the current 2026–27 GOV.UK scale charge figures, handling apportionment where cars change, and making sure Box 1 and Box 4 entries are correct. I also set up cloud-accounting workflows in Xero, QuickBooks, and FreeAgent so that fuel purchases are tagged and the scale charge calculation is ready each quarter without a scramble.

Fees are agreed upfront, and you deal directly with me throughout. If your VAT returns feel more complicated than they should, take a look at the VAT returns service or get in touch for a straightforward conversation about what you need.

Sources

These are the primary references for the scale charge. Keep them bookmarked — HMRC may ask for evidence of the table version you used.

  • Gov

Always use the official GOV.UK tables when calculating the scale charge, and save a copy of the relevant table page as part of your VAT records for each period.

This article provides general information about UK VAT rules and is not a substitute for professional advice. Tax rules can change, and your specific circumstances may affect which method is most appropriate. Confirm current rates and rules with GOV.UK or a qualified adviser before completing your VAT return.

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