veg oil - LOWER duty...

[legendgamesmaster]

I may have missed this on the forum, but if you have not already seen this on the VAT mans site:

http://customs.hmrc.gov.uk/channelsP...ument#P10_1054

Can I make Biodiesel and what is the excise duty on this?You must notify HM Revenue & Customs (HMRC) of your intention to produce biodiesel. For details please contact the National Advice Service (NAS) on 0845 010 9000 (+44 2920 501 261 outside UK).

It is the responsibility of producers to show HM Revenue & Customs (HMRC) that their product meets all aspects of the legal definition and sufficient tests must be carried out to prove that the specification is met. If a product does not meet all aspects of the definition it is a fuel substitute and will attract a higher rate of duty.

Biodiesel that can be shown to meet the full definition will attract a duty rate of 20 pence per litre lower than the sulphur-free diesel rate.{edit: SFD rate is currently 48.35 pence per litre, thus biodiesel is 28.35 ppl}

What is the duty rate on cooking oil?
Cooking oil (whether used or unused) which has not been specifically produced or processed as a road fuel, will normally be classed as a fuel substitute. The duty rate will be the same as the sulphur-free diesel rate.]{edit: i.e. 48.35 pence per litre}

(this is the important bit)>>The important question is whether the finished fuel meets the legal definition. If a vegetable oil used as road fuel meets the fiscal definition HMRC will be happy to accept that it is entitled to the duty rate for biodiesel.]{edit: i.e. 28.35 ppl}

[ END ]
Anyone here claiming the lower rate??

[MattF]

If that last bit is true, then this thread could really make it interesting:

http://www.hiluxsurf.co.uk/forums/sh...ad.php?t=29254

[mark1316]

I may have missed this on the forum, but if you have not already seen this on the VAT mans site:

http://customs.hmrc.gov.uk/channelsP...ument#P10_1054

Can I make Biodiesel and what is the excise duty on this?You must notify HM Revenue & Customs (HMRC) of your intention to produce biodiesel. For details please contact the National Advice Service (NAS) on 0845 010 9000 (+44 2920 501 261 outside UK).

It is the responsibility of producers to show HM Revenue & Customs (HMRC) that their product meets all aspects of the legal definition and sufficient tests must be carried out to prove that the specification is met. If a product does not meet all aspects of the definition it is a fuel substitute and will attract a higher rate of duty.

Biodiesel that can be shown to meet the full definition will attract a duty rate of 20 pence per litre lower than the sulphur-free diesel rate.{edit: SFD rate is currently 48.35 pence per litre, thus biodiesel is 28.35 ppl}

What is the duty rate on cooking oil?
Cooking oil (whether used or unused) which has not been specifically produced or processed as a road fuel, will normally be classed as a fuel substitute. The duty rate will be the same as the sulphur-free diesel rate.]{edit: i.e. 48.35 pence per litre}

(this is the important bit)>>The important question is whether the finished fuel meets the legal definition. If a vegetable oil used as road fuel meets the fiscal definition HMRC will be happy to accept that it is entitled to the duty rate for biodiesel.]{edit: i.e. 28.35 ppl}

[ END ]
Anyone here claiming the lower rate??

Would the lower rate not apply only if you were running 100% on SVO or WVO? Im new at this so dont shout at me if im wrong lol . I have sent my EX103 away with a covering letter asking why the rate is so high for using a non fossil fuel?

[MattF]

Would the lower rate not apply only if you were running 100% on SVO or WVO? Im new at this so dont shout at me if im wrong lol . I have sent my EX103 away with a covering letter asking why the rate is so high for using a non fossil fuel?

Theoretically, yes it would. The point is that the Government have been using every excuse under the sun, regardless of the fact that SVO meets it's own definition of a fuel substitute, biodiesel or whatever they class it as, to keep charging more duty on SVO/WVO. They're p1sspots. They put a definition in writing and STILL say we're wrong.