Compare Precise VAT Fuel Scale Charges

A company is entitled to reclaim VAT on business fuel purchases, but needs to be careful if employees are provided with free fuel for private use. The company then has a choice between:

  • Splitting all fuel expenses precisely into the business and private portion, and only reclaiming VAT on the business element
  • Reclaiming all VAT on fuel, whilst applying the fuel scale charges to calculate VAT payable on the private element

The first method will give a company a much better understanding of where costs arise, but the second method is simpler and might be advantageous if private mileages are high. Try some calculations below to see which is best

Save £41.55 by using the fuel scale charge

Savings based on 1 petrol fuelled car(s) driving 2000 miles, at a cost of 131.25p per litre, using a VAT rate of 20%

CO2 (gpkm)
Period length
Period beginning
The below data is used for the precise calculation
VAT rate (%)
Number of cars
Fuel type (ppl) Petrol (131.25)
Diesel (134.16)
User specified
Average mileage per car for period length
Fuel Scale Charge
Fuel scale charge £46  
VAT   £7.67
Ex VAT £38.33  
Precise calculation
Actual fuel spent £295.31  
VAT   £49.22
Ex VAT £246.09  
VAT difference   £-41.55