Sage Tip - VAT Scale Charges
The Scale Charges will keep changing so I am unable
to quote you precise values in-case I am unable to
update this in time.
The basics are fairly straight forward, however. A
proportion of of the VAT which you reclaim on vehicle
expenses is related to personal use of vehicles and the
VAT man wants it back, as opposed to everyone arguing
over how much is personal use and how much is business
related, there is a set charge applied to each vehicle.
The amount of this charge is dependant on the size and
type of engine the vehicle has, i.e. petrol, diesel, LPG
etc. The customs and excise website will give you the
current rates and the rules on how they must be applied.
If you go to the modules menu, you will find a wizard to
simplify the process. You simply add up the total of the
scale charges for all your vehicles which are also used
privately and enter it. Sage 50 Accounts will do the rest.
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