The European Commission have approved the continued use of the UK's VAT fuel scale charge adjustment for private use of cars until 31 December 2020.
The Fuel scale charge is one method that the UK allow businesses to use to calculate the amount of VAT repayable to HMRC in respect of car fuel costs where the car is used privately.
The fuel scale charge is a flat rate adjustment which avoids the burden of having to calculate the claw back more accurately.
The UK has used the fuel scale charge since 1986 and the current authorisation was due to expire at the end of 2018. The European Commission have now authorised the continued use of the fuel scale charge to 31 December 2020.
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