Fuel Scale Charge

George Registered Posts: 43 ? ? ?
I understand the principle of this, but the double entry still puzzles me. As I see it you have to credit your vat and sales accounts to get the correct entry in your vat return. As the expense is not wholly and exclusively a business expense, I presume the balancing debit entry is in drawings. Am I right?

But then, although your vat return is right, your accounts have their sales overstated, or is this part of the charge for having the luxury of claiming all your input vat on fuel?


Thanks. George


  • oakley
    oakley Registered Posts: 73 ? ? ?
    Fuel scale charges are there for personal use of a company car, the entries are cr VAT dr P&L (fuel cost is a good one), you should not be using a sales account.
  • Sharon1
    Sharon1 Registered Posts: 1 New contributor ?
    I was informed by Inland Revenue to make sure my fuel scale charge figures are in boxes 1 & 3 of my vat return.

    A separate fuel scale charge account was opened in Sage.
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