[Indizine]

Can someone explain more about this?

Im thinking of doing this so that calculating vat is easier than having to record my business milegae separate to my private mileage.

I do quarterley returns and have a CO2 band of 180 but looking at the table 9.5 in Notice 700/64, which shows 3 columns of rates, Im unsure what goes where on the vat return and what amount am I actually recovering.

[Fuzzy]

You asking Fuzzy of her opinion!

[Peter W]

The fuel scale charge gives you the option of reclaiming the VAT on all your fuel, if you pay a fixed amount of VAT (representing the private proportion) in return. It can lead to simpler records, and it can also leave you better or worse off, so you will need to look at your own situation carefully.

Basically you add the VAT on the total fuel expense to box 4 on the VAT return, and add the net cost of that fuel to box 7. Then, you pay the fuel scale charge from table 9.5 by adding the VAT amount in that table to box 1 (which carries down to boxes 3 and 5), and the net amount (final column) to box 6.

[Indizine]

Thank you Peter for explaining that for me to understand!