VAT road fuel charges reduced for company cars

Businesses running company cars will see a nearly 6% cut in HMRC’s rates of road fuel charges on VAT returns for new accounting periods from 1 May

The rate of VAT road fuel scale charges are designed to account for private consumption of fuel on business vehicles and the rates are being reduced from 1 May 2025 for the next 12 months through to 30 April 2026.

HMRC confirmed that ‘the 25/26 road fuel scale charges are lower than the 24/25 figures, the decrease is due to the lower fuel prices at the time of the revalorisation of the figures this year’.

Businesses must use the new scales from the start of the next prescribed accounting period beginning on or after 1 May 2025.

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