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 200.
Resolution
Check your nominal codes
Example nominal codes are below.
| Nominal code | Name | Management report | Report section |
|---|---|---|---|
| 2200 | Sales Tax Control Account | Balance Sheet | Current Liabilities |
| 7350 | Scale Charges | Profit and Loss | Overheads |
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
In this example the VAT Return is quarterly starting on 1 May 2022 for a car with CO2 emissions of 174g/km.
- On the left navigation menu, click Nominal Ledger > Enter Transactions > Journal Entry.
- Enter the date, reference and relevant information for the fuel scale charge, for example:
N/C Name Narrative VAT Code Debit Credit 7350 Scale Charges VAT fuel scale charge 9 419.00 2200 Sales VAT control VAT on charge 1 69.83 7350 Scale Charges VAT exclusive charge 1 349.17 
NOTE: The above assumes VAT Rate 1 is set as the Standard VAT rate of 20% and Rate 9 is a non-vatable code. - Click Post then click Close.
| This article provides general rather than specific guidance to assist all of our customers. We always do our best to make sure that the information is correct but as it's general guidance, no guarantees can be made concerning its suitability for your particular needs. The information is valid at the time of publishing and is provided without any warranty of any kind, express or implied. You should take professional advice if you require specific guidance on your individual circumstances, for example to ensure that the results obtained from using our software comply with statutory or regulatory requirements. For VAT, customs and excise and duties enquiries you should call the HM Revenue and Customs (HMRC) National Advice Service Helpline on 0300 200 3700, contact your local HMRC office or visit their website at www.hmrc.gov.uk In no event will we be liable to you for any direct, indirect, consequential or incidental loss or damage arising out of or in connection with your use of the information provided. The VAT or tax codes used in this article are based on the default or recommended codes set up in the software. These may be different in your software. |
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