hopefully, this is ok....
Hi all, I emailed HMRC with the following:
"Dear Sirs,
I am writing to you for clarification on a recent change in the law regarding duty payable on using vegetable oils as road fuel which came into effect on 30th June 2007.
I want to use ordinary SVO (new and unused rapeseed vegetable oil, i.e. Tesco cooking oil) as a road fuel in my diesel car.
Can I use less than 2500 litres per annum and not pay any additional duty?
(i.e. is this type of vegetable oil exempt from any duty as long as the 2500 litre per annum limit is not exceeded?)
I tried ringing your 0845 advice line but a definite and clear answer was not available to me.
Do I need to register in any way to use the above fuel substitute?
Please clarify the law as far as the above is concerned."
Today I received the following reply:
"Date 20 July 2007
Reference xxxxx
Dear Mr xxxxxxxxx
Vegetable Oil/DERV mixture
Thank you for your e-mail dated 15 July 2007 regarding the use of vegetable oil and DERV mixture in your car and whether you have to register with H M Revenue and Customs [HMRC].
The changes brought in under the ‘Biofuels Simplification’ [Revenue and Customs Brief 43/07] whereby producers of biofuels (or other fuel substitutes) who produce (or use) less than 2,500 litres per annum, will no longer be required to make entry, render returns or pay duty, are intended to cover both those who produce or use biofuels (such as biodiesel, or bioethanol), and those who produce or use other ‘fuel substitutes’ (such as vegetable oil).
Anyone producing (or using) more than 2,500 litres per annum will have to make entry of their premises (register), render returns and pay duty.
Where producers or users will exceed 2,500 litres per annum, then they need to make entry of their premises, render returns and pay duty in accordance with Public Notice 179e (which is currently being amended to reflect the recent changes).
For those producers who are ‘registered’ there will remain a continuing requirement for them to show that the fuel that they produce (or use) is Biodiesel (and meets the fiscal definition in HODA) and where this is not the case, they will continue to be liable to the higher rate of duty on the biofuel they produce (or use) at the higher Fuel Substitute rate.
Revenue and Customs Brief 43/07
http://www.hmrc.gov.uk/briefs/excise-duty/brief4307.htm
Public Notice 179E
http://customs.hmrc.gov.uk/channels..._pageLabel=pageLibrary_PublicNoticesAndInfoSh eets&propertyType=document&columns=1&id=HMCE_CL_000205
I hope the above information is satisfactory, but if you have any further queries regarding this matter, please do not hesitate to contact the address shown above quoting our reference number.
Yours sincerely
Mr D J Emmerson
Written Enquiries Officer"
Now, my belief is that if I use below 2500 litres per annum I can use any "fuel substitute"(obviously not Red Diesel or paraffin, etc), only if I use over the 2500 litres per annum do I have to register AND show that the fuel meets the fiscal? specification.
Any comments?
Hi all, I emailed HMRC with the following:
"Dear Sirs,
I am writing to you for clarification on a recent change in the law regarding duty payable on using vegetable oils as road fuel which came into effect on 30th June 2007.
I want to use ordinary SVO (new and unused rapeseed vegetable oil, i.e. Tesco cooking oil) as a road fuel in my diesel car.
Can I use less than 2500 litres per annum and not pay any additional duty?
(i.e. is this type of vegetable oil exempt from any duty as long as the 2500 litre per annum limit is not exceeded?)
I tried ringing your 0845 advice line but a definite and clear answer was not available to me.
Do I need to register in any way to use the above fuel substitute?
Please clarify the law as far as the above is concerned."
Today I received the following reply:
"Date 20 July 2007
Reference xxxxx
Dear Mr xxxxxxxxx
Vegetable Oil/DERV mixture
Thank you for your e-mail dated 15 July 2007 regarding the use of vegetable oil and DERV mixture in your car and whether you have to register with H M Revenue and Customs [HMRC].
The changes brought in under the ‘Biofuels Simplification’ [Revenue and Customs Brief 43/07] whereby producers of biofuels (or other fuel substitutes) who produce (or use) less than 2,500 litres per annum, will no longer be required to make entry, render returns or pay duty, are intended to cover both those who produce or use biofuels (such as biodiesel, or bioethanol), and those who produce or use other ‘fuel substitutes’ (such as vegetable oil).
Anyone producing (or using) more than 2,500 litres per annum will have to make entry of their premises (register), render returns and pay duty.
Where producers or users will exceed 2,500 litres per annum, then they need to make entry of their premises, render returns and pay duty in accordance with Public Notice 179e (which is currently being amended to reflect the recent changes).
For those producers who are ‘registered’ there will remain a continuing requirement for them to show that the fuel that they produce (or use) is Biodiesel (and meets the fiscal definition in HODA) and where this is not the case, they will continue to be liable to the higher rate of duty on the biofuel they produce (or use) at the higher Fuel Substitute rate.
Revenue and Customs Brief 43/07
http://www.hmrc.gov.uk/briefs/excise-duty/brief4307.htm
Public Notice 179E
http://customs.hmrc.gov.uk/channels..._pageLabel=pageLibrary_PublicNoticesAndInfoSh eets&propertyType=document&columns=1&id=HMCE_CL_000205
I hope the above information is satisfactory, but if you have any further queries regarding this matter, please do not hesitate to contact the address shown above quoting our reference number.
Yours sincerely
Mr D J Emmerson
Written Enquiries Officer"
Now, my belief is that if I use below 2500 litres per annum I can use any "fuel substitute"(obviously not Red Diesel or paraffin, etc), only if I use over the 2500 litres per annum do I have to register AND show that the fuel meets the fiscal? specification.
Any comments?
