Fuel Duty on BioFuels in the UK
Revenue & Customs biofuels simplification - Change in the way UK vegetable oil fuel duty is collected was passed in Parliament on 8th June 2007 and me into effect on 30th June 2007.
A de minimis production level of 2,500 litres per annum below which producers would not need to enter premises, submit returns or pay duty (Please note: we seem to have many customers who are getting confused by Revenue & Customs use of the word "producers", we have checked and it has been confirmed that USERS and PRODUCERS can be treated, for these purposes as THE SAME),
and
Reducing the frequency of returns for all but the largest producers (defined as those producing over 450,000 litres per annum) from monthly to quarterly.
Revised 12/06/07: For further info from Revenue & Customs website see the following publications:
- 11/06/07 Follow up to Revenue & Customs Brief 37/07 on Biofuels Simplification
- 08/06/07 Explanatory Memorandum Amendment
- Revenue & Customs Brief 37/07 - Introduction of biofuels simplification
- Biofuels and other fuel substitutes
Below are the previous proposal publications that set the background to the new rules
This is fantastic news for all biofuel users or potential users, UK Revenue & Customs will introduce new rulings on the way fuel duty is handled, in effect providing you use less than 2,500 litres per annum you will not have to register or pay duty.
Whats more Diesel is well over £1.00 per litre. New veg from supermarkets, cash and carry such as Costco and Macro in 20 Litre drums, or in larger quantities from wholesale suppliers and canneries such as KTC Edible Oils in larger quantities (1000 litre IBC) can be considerably cheaper!
To see what this will mean have a look at the table below, compare your average mpg to see how many miles or kilometres you can travel on veg oil without having to worry about fuel duty - that's right TAX FREE!! Perfectly legal.
| Maximum allowable veg oil usage in Litres before having to register or pay fuel duty to UK Revenue & Customs is set at 2500 Litres Per Year, below you can see how many miles or kilometres this equates to when compared to your vehicles Miles Per Gallon | |||||||||
| Average Miles Per Gallon | 20 | 25 | 30 | 35 | 40 | 45 | 50 | 55 | 60 |
| Miles you can run on veg oil before you have to register or pay duty: | 10,998 | 13,748 | 16,498 | 19,247 | 21,997 | 24,747 | 27,496 | 30,246 | 32,995 |
| Kilometres you can run on veg oil before you have to register or pay duty: | 17,700 | 22,125 | 26,550 | 30,976 | 35,401 | 39,826 | 44,251 | 48,676 | 53,101 |
Not Sure - Need Help?
Please remember, not every diesel engine can be converted and not everyone is sure what lies beneath the bonnet of their car. Consequently if you require any guidance or assistance, please contact us - we're happy to help.