The new fuel scale charges come into effect from 1 May 2025 and apply until 30 April 2026. These fuel scale rates are used to calculate the VAT due on road fuel provided for private use company cars.

If you’re a VAT registered business and provide fuel for both business mileage and private purposes, these new fuel scale charges apply from your next prescribed accounting period beginning on or after 1 May 2025. The fuel scale adjusts each year to reflect changes in fuel prices, and the budget process no longer includes this update—HMRC now publishes the road fuel scale charges annually.

When to Apply the New Charges

Use the updated VAT fuel scale charge tables from the start of your prescribed accounting period beginning on or after 1 May 2025. For most businesses, this will align with your next VAT quarter or next accounting period.

CO2 Emissions Figures and Fuel Scale Rates

To calculate the road fuel charge, you need to base it on your car’s CO2 emissions and the length of your VAT accounting period. If the CO2 value isn’t a multiple of five, you’ll need to round down to the next multiple. For a bi-fuel vehicle with two figures, use the lower CO2 figure.

If a car does not have a CO2 emissions figure, its engine size can be used to determine the band. HMRC allows you to calculate the charge based on engine size and cylinder capacity. You may also refer to the UK approval certificate if available.

The fuel scale rates continue to encourage lower-emission vehicles by scaling charges according to emissions.

Do You Need to Keep Detailed Mileage Records?

If you’re applying the VAT road fuel scale, there’s no requirement to keep detailed mileage records, as the scale charges account for both business and private use.

Summary for VAT

The VAT scale charges simplifies how VAT registered businesses account for road fuel used for private purposes. Make sure you’re using the correct fuel scale rates in your VAT return from the start of your next prescribed VAT period.

If you have any questions, or need further clarification, please get in touch…

Source: HM Revenue & Customs | 21-04-2025