VAT fuel scale charge

VAT fuel scale charge

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Hello all

Im unsure as to how the vat fuel scale charge works - can someone please clarify something for me ?

Ive seen the HMRC tables, with the scale charges listed - per co2 emission etc, per month and annually.

Quite simply - how does it operate ? I.e do you add the net charge per month x 3 onto the vat return ?  I know Ill be asking a really simple question here - but Ive always used the HMRC advisory rates, as most clients have high mileage and Ive been led to believe it is usually the best way to claim, but Im considering the fuel scale charge for a client, and have a mental block as to how it actually operates in practice.

Any advice gratefully received !!

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By Figurate
06th Jul 2011 08:17

Fuel Scale Charges
Fuel scale charge is used when the business pays for the fuel and then reclaims all the VAT. The scale charge is just a way of (in effect) "unclaiming" the VAT on the fuel that is used for private motoring.
So it's treated as output VAT on the VAT return (the actual VAT amounts are just per the fuel scale charges tables that you've already seen. So, if you have quarterly VAT returns, then it's the relevent amount for 3 months)

eg. if the car is less than 120 CO2 emmissions, then the charge (output VAT) for the year is £105 and the charge (output VAT) for the quarter is £26.25

Louise
www.figurate.co.uk
www.happyaccountant.com

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By levelheaded1903
06th Jul 2011 09:20

VAT fuel scale charge

thank you very much for clarifying that for me Louise

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Quack
By Constantly Confused
06th Jul 2011 11:23

Remind me

Does the scale rate go on in box 1, or is it purely the VAT itself that is adjusted?

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By Figurate
06th Jul 2011 13:33

Output VAT
I've always understood it to be treated as output VAT, which would be box 1.
Louise
www.figurate.co.uk
www.happyaccountant.com

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