Posting Scale Charges

Fuel-scale charges occur when company vehicles are subject to private use. According to HMRC, if fuel is bought by employees for business use and that vehicle is also used privately, the business must account for output tax on the private use by using scale charges.

If you use scale charges, you can claim back all the VAT charged on road fuel without splitting your mileage between private and business use. The calculations are based on the CO2 emissions of the vehicle plus the engine size.

Scale charges only apply to cars and not to commercial vehicles.

Thankfully, Sage has made claiming back VAT much easier with a wizard that guides you through the process:

1. From the main toolbar, click Modules, then Wizards and select Scale Charges Wizard.