Fuel Scale Charges - UK only

Summary

How to calculate and post the fuel scale charges using Sage 50 Accounts.

Description

If your company is registered for VAT, you can reclaim the VAT on fuel provided by your company for private and business mileage with company cars.

In return, HMRC requires a charge to be paid. You should calculate the charge for each vehicle from the scale charge tables in HMRC Public Notice 700/64 Motoring Expenses, then post the charges in Sage 50 Accounts.

Resolution

Check your nominal codes

Before posting your fuel scale charges, you must ensure that you have the relevant nominal codes. Read more >

Nominal code Name Management report Report section
2200 Sales Tax Control Account Balance Sheet Current Liabilities
7350 Scale Charges Profit and Loss Overheads

If you need to create these codes, please refer to this guide.

Calculate the scale charge

To calculate the fuel scale charges for each car you need to know:

To find the scale charge for your car, visit https://www.gov.uk/fuel-scale-charge

These values are the fuel scale charges you should post to your accounts. For further information about this, please refer to the following sections.

Post fuel scale charges using the wizard

 NOTE:  The Fuel Scale Charges wizard is not available in Sage 50cloud Accounts Essentials.

  1. From the Navigation bar, click VAT then click Scale charges.
  2. Enter your scale charge details as follows:
    Scale charges account Choose the required nominal code for your scale charges. By default, this is 7350. 
    Posting date Enter the date for the scale charges. 
    Reference  Enter a reference for your scale charges transactions. 
    Details Enter any required details. 
    Gross scale charge  Enter the gross value of the scale charge. 
    Tax code Choose your standard-rated tax code, for example, T1. 
    VAT scale charge This value calculates automatically from the gross scale charge value and the tax code. You can't change this. 
    Net scale charge This value calculates automatically from the gross scale charge value and the tax code. You can't change this.
  3. Click Next, check the details are correct, then click Post.
You can also post the fuel scale charges manually. Read more >

In this example the VAT Return is quarterly starting on 1 May 2022 for a car with CO2 emissions of 174g/km.

  1. On the navigation bar, click Nominal codes then click Journal entry.
  2. Enter the date, reference and relevant information for the fuel scale charge, for example:
    N/C Name Details T/C Debit Credit
    7350 Scale Charges VAT fuel scale charge T9 419  
    2200 Sales VAT control VAT on charge T1   69.83
    7350 Scale Charges VAT exclusive charge T1   349.17

     NOTE: The standard rated tax code, T1 by default, is used to ensure that the net and VAT values both appear on the VAT Return.

  3. Click Save then click Close.

 TIP: Need to amend a journal? Find out more >

 

 

Solution Properties

Solution ID
200427112155795
Last Modified Date
Thu Feb 16 09:31:15 UTC 2023
Attributes
Product Details
Modules: Tax
Modules: VAT
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