tax scrapped on biofuel

[tomkbucks]

in this months LRO mentions this - so does this mean i can now put cooking oil in the car without needing to pay duty on it ?

[datalas]

I'm not 100% convinced of the accuracy of this, so please check, but ISTR it's up to the first 2500l of the stuff...

[Wolfie]

Have a look at http://www.hmrc.gov.uk/briefs/excise-duty/brief4307.htm which announces this change. Unfortunately Notice 179E hasn't yet been updated as far as I can see.

Does cooking oil actually satisfy the technical requirements to be classesd as a biofuel? or is it just a fuel substitute?

I also believe that there are requirements for record keeping such that if HMCE decide to investigate you, it is down to you to prove that you have satisfied the rules.

Make sure you understand everyting fully before you decide to use anything other than fuel out of a filling ststion pump. I'm sure that the penalties if you make a mistake will be far greater than any savings you make.

[tomkbucks]

i was not suggesting a trip to tesco , but following on from the 5th gear they did a few months back about recycling cooking oil i just thought this may be possiable ? if anyone has this months LRO check it out

[mistabushi]

as far as i can see we are allowed to use 2,500 ltrs of biofuel before we pay duty on it :D  i have a look here

http://www.hmrc.gov.uk/si/2007-1640.pdf

[redhand]

as far as i can see we are allowed to use 2,500 ltrs of biofuel before we pay duty on it :D  i have a look here

http://www.hmrc.gov.uk/si/2007-1640.pdf

Where in this link or anywhere else on the web does it say "Bio-diesel may be placed in a vehicle that is used on a public highway"???

Answer NO WHERE. that link is purely for the small scale production of Bio-fuel it doesn't even mention Veg Oil, which is not a Bio-fuel anyway.

The law on the use of fuel additives and fuel subsitutes HAS NOT CHANGED. you still have to pay the full rate of duty on all fuel used in vehicles driven on a public highway (with the exception of some agricultural vehicle and road repairing machinery)

There has been loads of discussion on this subject, on here and on just about every other diesel car related UK website on the net. Do a search if you don't believe me.

[muddyjames]

I have been watching closely on the matter of bio diesel into cars and just wondered if you can help answer a few questions for me please?

At the moment I don't run my Land Rover on vegetable oil as I worked it out to be the same price as diesel, once I have bought it from Tesco then paid tax on top.

As of 1st July I dont need to register with the goverment or as a fuel producer do I for my car I do about 10,000 miles in or less as it is a second car. Is this correct?

As of 1st July can I walk into tesco, buy a senisble amount of veg oil and pour it inot my fuel tank without the worry of paying tax or is this bio fuel only for old oil that is filtered to make suitable oil torun a car on?

You are correct; from 1 July there will be no duty on biodiesel, or on vegetable oil which does not always qualify as biodiesel (it depends on its exact specification), as long as you as a producer do not make or set out for use as road fuel more than 2,500 litres of any such product in the last 12 months. You will have to check at the end of each month whether you have gone over this amount in the last 12 months and notify us to register if you have. Setting out for use includes buying vegetable oil with the intention of using it as road fuel.

I hope this clarifies it sufficiently.

All seems logit to me :D

[Skibum346]

Can't argue with the horses mouth....

Nice it's that end talking for a change!

 :lol:

[muddyjames]

:lol: skibum

If anyone wants the email address of the person I contacted I am happy to pm it to you. just pm me first. He was very good and replied within about half an hour of most things I asked.

Made a refreshing change!

[redhand]

Can't argue with the horses mouth....

Nice it's that end talking for a change!

 :lol:

Apparently you can try this link and this extract from their forum


http://www.vegetableoildiesel.co.uk/

This exemption refers to Biofuels - which are Biodiesel, Bioblend, Bioethanol and Bioethanol blend.

The question would be does SVO/WVO qualify under the exemption.

1. If the SVO meets the fiscal definition for biodiesel (96.5% etsters and 0.005% or nil sulphur by weight etc..) then no problems.

2. If it does not meet the definition in No.1 above will it meet any of the other definitions?

2a. Is SVO a Bioblend = biodiesel mixed with heavy oil, therefore no.

2b & c. Is SVO a Bioethanol/blend = obviously not.

Therefore under the current HMC&E 197E (which has yet to be updated) SVO/WVO would be considered as a fuel substitute. Although a number of their other pages have not been updated they have been saying that SVO is a a fuel substitute:


From HMC&E FAQ page:
"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.

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."


I fear, that unless, HMC&E or a stated case sheds light on the subject people using SVO as a biofuel should be prepared to show it meets the fiscal definition or be ready to pay the higher rate of duty.

I know that people will quote previous SVO rulings, but from memory the case rested on the fiscal definition.

Remember, all that has changed is the way the duty is collected. Unless I have missed it there has been no re-defining of the definitions of Biofuels.