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Approval from European Commission until 31 December 2020.
The European Commission has approved the UK’s request to extend until December 2020 its VAT directive derogation allowing employers to follow HMRC’s road fuel scale charges to account for VAT for private use of company cars.
The UK operates a special scheme of scale charges for businesses to account for non-deductible VAT on fuel expenditure in company cars, based on the engine capacity and fuel type. These are updated every year and the revised charges apply from 1 May.
The current derogation expires on 31 December and the UK applied for an extension until 31 December 2020.
See European Commission.
