Fuel scale charge

Fuel scale charge

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Lets say I use a motor vehicle for personal use and the business pays the fuel and reclaims the VAT in full - therefore the fuel scale charge would be the appropriate accounting technique...

So the relevant table (3 month period):

Emissions: 121 - 124
Fuel scale charge: 168
Vat on FSC: 28.00

So I understand its about charging yourself an output tax, so DR fuel scale charge expense a/c CR vat...

Bit what figure exactly are you charging? The 168 or the 28?
And is this fixed irrespective of how much fuel the company pays for?

Am I then right to say this isn't the end of the matter and a BIK would be applicable?

Replies (2)

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By rob winder
07th Jan 2014 10:47

You charge the fuel scale charge IE £28 and this is fixed regardless of how much fuel the company pays for.

You are correct about the BIK, if the company provides even one litre of fuel for personal use you have incurred a BIK.

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By johngroganjga
07th Jan 2014 10:51

£28 is the VAT adjustment

£28 is the VAT adjustment that goes on the employer's VAT return.  £168 is just a step along the way to calculating it.  Yes it applies irrespective of the amount of private fuel purchased.

Yes is only deals with VAT.  Income tax payable by the employee on the BIK is completely separate. 

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