10 Questions
What is the output VAT payable amount that the business will enter in Box 1 if the fuel scale charge for the relevant VAT period is £183 including VAT?
£30.50
How much input VAT will be reclaimed in Box 4 if £380.70 (including VAT) was paid on petrol used for the car?
£63.45
What amount will be entered as a sale excluding VAT in Box 6 if the business chooses to round up the fuel scale charge?
£153
If 60% of the miles driven were for business purposes, how much input VAT should be reclaimed in Box 4?
£38.07
What is the input VAT reclaim amount in Box 4 if the business decides not to reclaim any input VAT on fuel for cars?
£0
How is the input VAT amount of £63.45 calculated for fuel?
£380.70 + 120% x 20%
What is the equivalent of the fuel scale charge in terms of sales invoice issued?
Sales invoice including VAT for the supply of private fuel
What should be done if the business chooses not to reclaim VAT on fuel for one car?
It cannot reclaim VAT on all fuel used for other vehicles.
How much is the VAT included in the £183 fuel scale charge for the relevant VAT period?
£30.50
If detailed mileage records are kept, what percentage of input VAT will be reclaimed for business use only?
Percentage based on business miles travelled
Study Notes
Blocked VAT: Accounting for Fuel Scale Charges on a VAT Return
- Fuel scale charges depend on a car's CO2 emissions figure.
- A fuel scale charge is equivalent to a sales invoice issued including VAT for private fuel used by a business owner or employee.
Fuel Scale Charge Calculation
- Calculate output VAT payable: fuel scale charge + 20% VAT.
- Calculate input VAT reclaimed: petrol cost including VAT + 20% VAT.
VAT Return Boxes
Box 1
- Enter output VAT payable: fuel scale charge calculation result.
Box 4
- Enter input VAT reclaimed: petrol cost calculation result.
- Alternative options:
- Reclaim input VAT for business miles travelled and disallow input VAT for private miles travelled.
- Do not reclaim input VAT on fuel used for cars.
Box 6
- Enter sale excluding VAT: fuel scale charge including VAT - output VAT.
Accounting Options
- Reclaim input VAT that relates to fuel used for business miles travelled.
- Keep detailed mileage records as evidence.
- Do not reclaim input VAT on fuel used for cars, applies to all vehicles if chosen.
Learn how to account for fuel scale charges on a VAT return, including how to calculate the charge based on CO2 emissions. Practice example provided.
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