Fuel tax credits provide businesses with a credit for the excise or customs duty included in the price of fuel used in the course of operating their business.
Almost all business activities that occur off-road are entitled to a full credit of the duty. In the case of road transport activities, the credit is reduced by a road user charge (RUC).
The gap comes from taxpayers not claiming their correct credits. The credits system is voluntary and eligible taxpayers might underclaim or not claim, while other taxpayers might claim more than they are entitled to. This can result in either a positive or a negative gap.
This gap forms a part of our overall tax performance program. Find out more about the concept of tax gaps and the latest gaps available.