Veg Oil. HM Customs tell me that they will make it tax free.

[Dan T1111]

I spoke to a nice lady at HM Customs a few days ago. She informed me that the recent budget was going to allow private users of veg oil to use something like 2100 litres per annum duty free. However there hadn't been a date set to implement this. Anyone got any more "From the horses" mouth information on this potentially great bit of news?

[just_vegin]

I'm glad this is what you've been told by HRMC. It means that things are going ahead...

There was a consultation paper out which discussed this in detail. Then the section deep down in the budget...section 7.49

"Following consultation, HMRC will relax
requirements for small biofuels producers to register and submit returns and reduce the
requirement for all but the largest producers from monthly to quarterly returns."

I think it was 2,500 litres per year before you need to register.

Mike

[Dan T1111]

Hi Mike, yeah it is good news. I only have caught the quantity as I was trying to get back off the floor and onto my chair again after that... I think I'll keep calling them once a month to check up on this.

[just_vegin]

I'll give them a call tomorrow to find out if I still need to post in my March returns....

[mister smith]

All sounds a bit suspicious to me,
i mean honestly

nice lady at HM Customs

Are you sure about that

[just_vegin]

Well, the lady I spoke to today was not quite so liberal with any detials. She said there may be changes to the system in the summer.

So until then, it continues to be 28.35pence per litre.

Mike

[mister smith]

Is there still 2 different rates? I know it used to be 27.1p and 47.1p
, the latter for if you couldn't prove the spec of the veg oil was 'fuel grade'.

How does it all work now?

[just_vegin]

Yes, still something like that. Although since the pre-budget speech there was an increase in the duty (which was funily enough applied at midnight!!)

So now its 28.35p and 48.35p (or is it higher again now after the budget?!)

I hear there are people who have gone on the lower rate without tests by 'strongly discussing' why their fuel should be on the lower rate. I Also hear that some oil manufaturers, eg KTC have tested their oil to enable people buying it to get on the lower rate.

[mister smith]

I did a bit of googling after reading your post about C&E.

You're right about getting the lower rate easily, I found several references to the KTC soyabean oil too.

Once upon a time, people were getting their veg oil tested in a lab (at a fair cost as well) and passing a certificate onto the C&E, to get the lower rate. Many biodiesel producers had been hit with a 'back tax', and were fighting to prove that their fuel was actually fuel grade & entitled to the lower rate.

Now, people are just providing a letter of confirmation to C&E from the veg oil manufacturer, confirming the esters percentage. Here's one thread about it, from the Goat Industries forum.

http://www.vegetableoildiesel.co.uk/for ... p?tid=1775

Apparently, the 'no duty on under 2500 litres' rule should be put into the legislations in summer.

Somebody in one of the posts hit the nail on the head saying something like:

I can't believe the government are going to do it, because it's actually the right thing to do!?!

[just_vegin]

Good work mr smith

Hopefully we won't see the enforcement of the highest rate situation anymore - it's not helpful to anybody and counter intuitive. Then there was the "if it starts on the fuel its biodiesel on the lower rate, otherwise a fuel subsitute" period. I look forward to seeing this being implemented in the Summer

[skell]

So I reckon a t25 tank a week is going to come out around 2100 litres a year, I forget the exact capacity.

I notice the change in tax is for producers of bio fuel, would I count as a producer by using clean veg oil from the supermarket or do I need to get into recylcling oil?

Was veg-curious, but this bit of news seems to have swung it. just got to find a suitable second fuel tank....

[Kool-Kamper]

Was veg-curious, ....

That makes two of us then!

[just_vegin]

At the moment you need to register as a biofuel producer to pay the duty on a product that has changed use to become a road fuel. ie there is no difference between a person who collects and filters used cooking oil from the local pub and a person who fills a trolley in Macro.

I don't see this changing....

There is a big difference though environmentally between using a foodstuff as fuel and using a waste product as fuel.

Once I source my own camper I'll be fine tuning a vegoil twin tank kit especially for the T25 diesels out there.

[Scruffy]

Hi All

Not sure if this is useful but is the environmental measures section from the Budget. It contains details on tax changes on bio-fuels.

http://www.hm-treasury.gov.uk/media/73B ... r7_273.pdf

Alternative fuels measures start on page 177 of the budget (which is page 14 of the section I have sent the link to).

The real fine legal details are in the Finance Bill 2007.

http://www.publications.parliament.uk/p ... inance.htm

I haven't even attempted to look at it. Even the first page gives me a headache it is so complicated!

Best

Dave

[HarryMann]

(3)


In section 6AA(3) (biodiesel), for “£0.2835"| substitute “£0.3035"|.


(4)


In section 6AD(3) (bioethanol), for “£0.2835"| substitute “£0.3035"|.

The amendments made by this section come into force on 1st October 2007.