When the fuel scale charge applies
You have three choices when a business pays for fuel that is partly used privately:
- Reclaim all the VAT and pay the fuel scale charge. Simple, and often the cheapest option for cars with low private mileage.
- Reclaim VAT on business mileage only, backed by a mileage log. No scale charge.
- Reclaim no VAT on fuel at all, including for commercial vehicles. No scale charge.
The charge is per car, based on its CO2 emissions, and the figure in the table already includes VAT. You declare the VAT element (1/6) as output tax in box 1 of your return and the net value in box 6.
How to read the table
Find the car's CO2 emissions on the V5C logbook. If it is not a multiple of 5, round it down to the nearest 5. Cars with no CO2 figure use engine size bands instead: check HMRC's guidance for those.
This table is for VAT periods starting on or after 1 May 2026. HMRC publishes a new one every spring.
| CO2 g/km | Year | Quarter | Month |
|---|---|---|---|
| 120 or less | £657 | £163 | £54 |
| 125 | £983 | £246 | £81 |
| 130 | £1,051 | £261 | £86 |
| 135 | £1,114 | £278 | £92 |
| 140 | £1,182 | £294 | £98 |
| 145 | £1,245 | £311 | £103 |
| 150 | £1,314 | £328 | £109 |
| 155 | £1,377 | £344 | £114 |
| 160 | £1,445 | £361 | £119 |
| 165 | £1,508 | £377 | £125 |
| 170 | £1,576 | £393 | £130 |
| 175 | £1,640 | £409 | £136 |
| 180 | £1,708 | £426 | £142 |
| 185 | £1,771 | £442 | £146 |
| 190 | £1,839 | £459 | £152 |
| 195 | £1,902 | £475 | £158 |
| 200 | £1,971 | £492 | £163 |
| 205 | £2,034 | £509 | £169 |
| 210 | £2,102 | £524 | £174 |
| 215 | £2,165 | £541 | £180 |
| 220 | £2,233 | £557 | £185 |
| 225 or more | £2,297 | £574 | £190 |
Example
A company car with 152 g/km, VAT returns quarterly. Round down to 150 g/km. The quarterly charge is £328, so the VAT to pay back is £328 ÷ 6 = £54.67, and £273.33 goes in box 6.
Questions
Do I need the fuel scale charge for a van?
No. The fuel scale charge only applies to cars. For vans you reclaim VAT on fuel used for business and must not reclaim the private share.
What if the car is electric?
Electric cars do not use road fuel, so there is no fuel scale charge. Charging at work or at home has its own VAT rules.