Posting the Fixed Profit Car Scheme / VAT Scale charge

Discussion in 'UK Accountancy' started by Troy Steadman, Feb 10, 2004.

  1. To save you the trouble of telling me what an idiot I am, my journal
    in the other thread is *wrong*. Out of the darkness perhaps can come a
    little light:

    1) A Director submits a claim under the Fixed Profit Car Scheme. The
    journal is Dr Motor Expenses Cr Cash or Director's Loan Account, but
    should those Motor Expenses be added back in the CT Comp?

    2) What is the double entry to post the VAT Scale charge, so that Net
    Outputs and Motor Expenses are both correct?
     
    Troy Steadman, Feb 10, 2004
    #1
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  2. Troy Steadman

    Doug Ramage Guest

    "Troy Steadman" <> wrote in message
    news:...
    > To save you the trouble of telling me what an idiot I am, my journal
    > in the other thread is *wrong*. Out of the darkness perhaps can come a
    > little light:
    >
    > 1) A Director submits a claim under the Fixed Profit Car Scheme. The
    > journal is Dr Motor Expenses Cr Cash or Director's Loan Account, but
    > should those Motor Expenses be added back in the CT Comp?
    >


    FPCS does not apply after 2001-02. I assume you mean AMAP (Approved Mileage
    Allowance Payments)? Either way, there is no add back for CT.


    > 2) What is the double entry to post the VAT Scale charge, so that Net
    > Outputs and Motor Expenses are both correct?


    The Vat Scale Charge only applies to* private* fuel, not, as in this case,
    business fuel.
    --
    Doug Ramage
     
    Doug Ramage, Feb 10, 2004
    #2
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  3. "Doug Ramage" <> wrote in message
    news:c0a6es$13kemn$-berlin.de
    >
    > FPCS does not apply after 2001-02. I assume you mean AMAP (Approved Mileage
    > Allowance Payments)? Either way, there is no add back for CT.


    More rust cleared away, thanks Doug!

    > > 2) What is the double entry to post the VAT Scale charge, so that Net
    > > Outputs and Motor Expenses are both correct?

    >
    > The Vat Scale Charge only applies to* private* fuel, not, as in this case,
    > business fuel.


    I mean if there *is* private fuel, sole trader or Ltd Co, the scale
    charge is presumably borne by the individual

    Dr Drawings or Loan A/C *NOT* Motor Expenses
    Cr VAT

    and the notional output cannot be posted at all.




    --
     
    Troy Steadman, Feb 10, 2004
    #3
  4. Troy Steadman

    Doug Ramage Guest

    "Troy Steadman" <> wrote in message
    news:...
    > "Doug Ramage" <> wrote in message
    > news:c0a6es$13kemn$-berlin.de
    > >

    <snip>
    > > > 2) What is the double entry to post the VAT Scale charge, so that Net
    > > > Outputs and Motor Expenses are both correct?

    > >
    > > The Vat Scale Charge only applies to* private* fuel, not, as in this

    case,
    > > business fuel.

    >
    > I mean if there *is* private fuel, sole trader or Ltd Co, the scale
    > charge is presumably borne by the individual
    >
    > Dr Drawings or Loan A/C *NOT* Motor Expenses
    > Cr VAT
    >
    > and the notional output cannot be posted at all.
    >


    Sorry, mis-understood. Yes, it will be Drawings.
    --
    Doug Ramage
     
    Doug Ramage, Feb 10, 2004
    #4
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