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