Summary
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 >
Calculate the scale charge
To calculate the fuel scale charges for each car you need to know:
- The car's CO2 emissions figure - You can find this on your vehicle registration document, or on the Vehicle Certification Agency website https://www.vehicle-certification-agency.gov.uk/fuel-consumption-co2/fuel-consumption-guide/cars-and-emissions/
- The period of time covered by the VAT Return, for example a month, a quarter or a year
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.
- From the Navigation bar, click VAT then click Scale charges.
- 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. - Click Next, check the details are correct, then click Post.