You can use fuel scale charges to work out how much VAT to pay back on fuel if you use a business car for private purposes. This means you do not have to keep detailed mileage records.
How it works
- Reclaim all the VAT on fuel for your car.
- Use this HMRC tool to calculate the right fuel scale charge.
- Include this in the amount you owe on your VAT Return.
Before you start
- You’ll need to check your car’s CO2 emissions figure if you cannot get this from your log book. For dual fuel cars, use the lower of the 2 figures.
- For cars registered before 1997 that don’t have a CO2 emissions figure, the number you use depends on the engine size.
Nominal codes - Before you can post your fuel scale charges, you must ensure that you have the relevant nominal codes:
|Name||Management Report||Report Section|
|VAT Control (Default)||Balance Sheet||Current Liabilities|
|Scale Charges (Custom Account code)||Profit & Loss||Expense|
To post the fuel scale charges
In this example the Vat Return is quarterly starting on the 1 May 2018 for a car with C02 emissions of 160g/km
- Head to Tools > Journals > All Journals
- Enter the date, reference and any further relevant information for the fuel scale charge, for example:
|Scale Charges||VAT fuel scale charge||£309|
|VAT Control||VAT on charge||£51.50|
|Scale Charges||VAT exclusive charge||£257.50|
Ensure that both credit values have been checked to be included in VAT return as sales!