Output VAT on the supply of private road fuel

HMRC have amended the VAT road fuel scale charges with effect from 1 May 2021.

Businesses must use the new scales from the start of the 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

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 5, the figure is rounded down to the next multiple of 5 to determine the level of the charge.

For a bi-fuel vehicle which has two CO2 emissions figures, the lower of the 2 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 its 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 1 month, 3 months or 12 months).

You will need to apportion the fuel scale charge if you change car during the accounting period and, 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.

See: VAT road fuel scale charges from 1 May 2021 to 30 April 2022 - https://www.gov.uk/guidance/vat-road-fuel-scale-charges-from-1-may-2021-to-30-april-2022