Fuel Scale Charge

Modified on Thu, 24 Jun, 2021 at 2:30 PM

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.

Preparation

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

How to add a custom account code

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:

Name	Details	Debit	Credit
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!