This article explores Fuel Scale Charge Posting within Insight Legal

1. To post a Fuel Scale Charge, you need to go to the relevant nominal under Accounts > Nominal.

2. You will need to look up the nominal ledger that you wish to post to, which is usually a motoring expense or fuel nominal. Once you have selected the nominal, you will see a Posting Type drop-down list appear. Select the posting type Fuel Scale Charge.

• The FSC posting type will ensure your adjustment is included in the correct boxes on the VAT return, rather than being listed as purchase VAT. It will also ensure that only the VAT amount will be debited from the nominal ledger. The net amount of the adjustment will only be included on the VAT return, not on the nominal ledger.
• As per the HMRC’s website (links below), your Fuel Scale Adjustment should include both a net and a VAT figure, and these will be shown in boxes 1, 3, 5, and 6. However, only the VAT amount should be debited from your motoring expenses/fuel nominal. The net amount should not be included as a balance on your nominal ledger.
• You can work out the amount of the fuel scale charge using HMRC’s website - How to Fill In and Submit Your VAT Return (VAT Notice 700/12) and VAT on Monitoring Expenses Notice.

3. Enter the Date that the adjustment should be made, and give the posting a relevant Ref and Description. These will appear on the nominal ledger and the VAT return report. In the Amount field, enter the gross amount of the adjustment (i.e., the net amount plus the VAT amount). Ensure the Debit/Credit dropdown is a Credit and enter the correct VAT amount and VAT rate (usually 20%). 

In the example below, we are going to be making an adjustment with a VAT amount of £40.

4. Once you are happy with the details, click the Post button in the bottom right hand corner. The VAT amount will appear on the nominal ledger.