Quick Answer: What is the VAT scale charge?


How do VAT fuel scale charges work?

The fuel scale charge lets the business claim back all the VAT on fuel they have paid, just like any other eligible VAT expense, then make an adjustment on each VAT return submitted at the amount set by HMRC to reduce the input VAT claimed as a reflection of personal use.

How much is the fuel scale charge?

Annual charges

CO2 band VAT fuel scale charge, 12 month period (£) VAT on 12 month charge (£)
155 1,226 204.33
160 1,287 214.50
165 1,343 223.83
170 1,404 234

Where does fuel scale charge go on VAT return?

The fuel scale charge is accounted for in box 1. Box 1 is for output tax – in other words VAT due in the period on sales and other outputs.

Do VAT fuel scale charges apply to vans?

The fuel scale charges are calculated according to a car’s CO2 emissions and the fixed charge is added to the output VAT on your VAT return. The fuel scale charge only applies to cars because it is assumed that commercial vehicles, trucks, and vans are not used for private travel.

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How much VAT can you claim back on fuel?

HMRC says you can reclaim 100% of the value added tax incurred on fuel paid for business purposes. However, you must be able to prove that the fuel has been used entirely for business purposes and that no private journeys have been undertaken.

How do you calculate VAT on fuel?

FreeAgent Guide – How to calculate VAT on fuel

FreeAgent calculates the VAT by taking 1/6 of the advisory fuel rate for company cars multiplied by the mileage. The current mileage rate of 45p/25p that most employees will use to claim back any mileage, is designed to cover the whole cost of owning and running the car.

When can I claim fuel scale charge?

VAT Fuel Scale Charges apply when the entire amount of VAT you pay on fuel is reclaimed via your input VAT. An output VAT charge is then made via the VAT Fuel Scale Charge. It also follows from this that if your company vehicles are not used for private usage, there’s no need to consider Fuel Scale Charges.

How do I post fuel scale charges?

To post the fuel scale charges manually

  1. Go to Journals, then click New Journal.
  2. Enter the Reference, Date and a Description for the journal.

What are scale charges?

Scale charges are a way of simply apportioning the private use of fuel in cars provided by VAT registered persons to themselves or their employees. Output tax must be accounted for when VAT has been recovered in full on fuel paid for by the VAT registered person but some of that fuel is used privately (eg.

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Can I reclaim VAT on mileage?

As a business, you can reclaim the VAT on your employees mileage expenses if you’re paying your employees a mileage allowance for using their own vehicle for work. You will only be able to claim VAT on the fuel portion of the mileage claim.

How do I claim VAT back on business mileage?

​The 16p is VAT inclusive so you need to work backwards to find out the VAT claimable. So 16p represents 120% (100% plus 20% VAT). So the VAT element is 16/120*20 = 2.67p. So for every business mile you claim 45p for, you can reclaim 2.67p VAT.

Does the fuel scale charge include VAT?

You can recover all of the input VAT on the purchase but you must also apply a fuel scale charge which is a method used to account for the private usage. The charge is included in the output VAT box on your VAT return.

Is there a VAT scale charge on electric cars?

HMRC says that supplies of EV charging through charge points in public places are charged at the standard rate of VAT. There is no exemption or relief that reduces the rate of VAT charged. There is a reduced rate of VAT for supplies of small quantities of electricity, known as ‘de minimis’.