accounting software to do the car fuel scale charge?

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avantprime

  • #1
    Hi everyone, I have just started my own business as limited company, and I bought Microsoft Accounting 2008 to do record all the transactions. Everything works out fine except the VAT Return ended in July.

    As we have a car to be used for business and private use, so I claimed all the VAT purchased from fuel, and of course we have to pay the Road fuel scale charges. The question is how do I work out this charge from the software (I sent the VAT return already, as I can work the figure out on paper), but I am really confused how to do the accounting softeware.

    I had one thought, but I was stuck here:|

    So I created a new customer as 'fuel scale charge', and created one invoice to fuel scale charge, with net £246.81, VAT £43.19, because this's how much I have to pay for three months. But then the VAT return doesn't include this as the VAT return is on Cash basis (when customer has paid invoices), and I will never get paid from fuel scale charge.

    Can anyone advice what to do about this issue, thanks. This is making me cannot sleep, very depressing.
     
    Paul Kelly ICHYB

    Paul Kelly ICHYB

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    • Jan 21, 2008
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  • #2
    I would say that you enter the mileage claim as you would normally enter any claim. the way you have created a 'fuel scale charge' customer may confuse things, as, if you also allocate that figure to the claimant, the figure is entered twice.

    For the VAT element, you probably enter that direct to the VAT account, with a journal note.

    I am sure that a pro will be here soon.

    Out of interest, can you describe how you got to £43.19?
     
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    avantprime

  • #3
    Thanks for your quick response. The scale charge for our car is £290.00 quarterly, so the net is £246.81 plus VAT £43.19, comes out with the gross £290.00.

    I think you are right about doing the mileage claim, it can be much easier. We have done the paperwork for the VAT Return already, so we will have to change the way we did it earlier, and adjust the next VAT Return. Do you think it is ok to do this?


    consultant said:
    I would say that you enter the mileage claim as you would normally enter any claim. the way you have created a 'fuel scale charge' customer may confuse things, as, if you also allocate that figure to the claimant, the figure is entered twice.

    For the VAT element, you probably enter that direct to the VAT account, with a journal note.

    I am sure that a pro will be here soon.

    Out of interest, can you describe how you got to £43.19?
    Click to expand...
     
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    Paul Kelly ICHYB

    Paul Kelly ICHYB

    Moderator
    • Jan 21, 2008
    10,137
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    London
    icanhelpyourbusiness.co.uk
  • #4
    I am not an accountant, however, I believe if you document the adjustment you will make, all will be ok, but, of course, you should really see your own accountant!
     
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    Duke Fame

    Duke Fame

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    Jan 28, 2008
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  • #5
    avantprime said:
    Thanks for your quick response. The scale charge for our car is £290.00 quarterly, so the net is £246.81 plus VAT £43.19, comes out with the gross £290.00.

    I think you are right about doing the mileage claim, it can be much easier. We have done the paperwork for the VAT Return already, so we will have to change the way we did it earlier, and adjust the next VAT Return. Do you think it is ok to do this?
    Click to expand...


    Yes it is, you only need to let them know you go ove the threashold. Also, just post a journal once a qtr. It's been a while snce I've used Dynamics (MS accounting)
    DR Fuel costs with a code of T9 £290.00
    CR VAT liability account with a code of T1 £43.19
    CR Fuel costs again this time with code £246.81

    This ensures your box 7 is right rather than simply doing a 2 line journal of £43.19
     
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