And yet ANOTHER Red diesel post...

[DAC]

So what are the blooming rules??

We have had petrol boats since boating so have never had any need to buy diesel etc. We were worried about how the taxing of diesel was going to affect the boating industry but it appears to not have had much affect/if any.

So would you be allowed to put red diesel in your boat if you had it?
How is it tested and by who??
Do you pay the full price at the pumps and claim it back at the end of the year??

Sorry if all these questions are obvious t others but i've never needed to read up before and thought it's about time to actually get my facts right.

Had a little search through the forum but nothing to explain in simple person terms.

Thanks

 

[jhr]

The rules are a bit opaque, but my understanding boils down to this:

- You still buy red diesel, as you have always done, but need to make a declaration to the vendor about the uses you will put it to.

- If the fuel will only be used for propulsion (say, if you have an open dayboat or RIB), you should declare this, and pay duty on all the fuel you purchase

- If, alternatively, you will use some of the fuel for generation and/or heating, you should declare this to the vendor and indicate the proportion of the fuel on which you should pay tax. HMRC have indicated, after consultation with the RYA, that a typical split for the average boat would be 60% propulsion, 40% other uses and that, if you declare this as your normal usage, you are extremely unlikely to be challenged about it. This may be counted as a result - the net effect is that you'll pay about the same amount of duty on marine fuel as you would on the Continent, rather than at the extortionate rate that UK road-users are forced to pay.

- If you believe that your personal split is different to this (for example, if you're a liveaboard and never go anywhere, but need to generate electricity and/or keep your boat warm), you should declare the appropriate split to the vendor, but should be ready to defend this (and to prove it) to HMRC.

- The vendor will then levy tax at the appropriate rate.

Just my own interpretation - I'm neither an Accountant, nor a Tax Inspector, and I own a petrol powered boat, so I already pay top whack.

 

[DAC]

haha, thanks jhr. So diesel still being sold at the marinas is still red diesel! Was thinking how they were going to police the use of it.

So if a farmer owned a boat he'd be laughing?? He could use his 'private stash' in his boat and no one would be any the wiser??

Odd!

 

[Solitaire]

[ QUOTE ]
So what are the blooming rules??



[/ QUOTE ]

The government have said that fuel can be levied on a 60/40 basis. That is 60% will be taxed at full fuel duty and 40% will allowed against "heating" costs. The total amount is then subject to vat at 5%. Most of the big marinas have already altered their prices to reflect this balance and while you will be asked by the pump operator to complete a declaration there is nothing else for you to do.

Now, you can claim back at any % you like, but that then means you may be subject to investigation or additional declaration.

So if you are a leisure user and your normal fuel point is charging a rate which takes the 60/40 ratio into account you need do nothing. Nobody will come dipping as red is legal for use.

 

[jhr]

[ QUOTE ]
He could use his 'private stash' in his boat

[/ QUOTE ] Possibly, but that's more a matter for the Drug Squad than for HMRC! /forums/images/graemlins/cool.gif.

 

[sailorman]

as they have always done ( taxman pays )
morrisons sell red @ some pumps

 

[Pendana]

There are some that buy red diesel in gerry cans from local garages at 60p/litre rather than paying the 85p/litre at the marina. Apparentlly keep it less than 100 litres and no questions asked not even name & address.

Personally can't be bothered, theres enough to do on boats without having to lug it's fuel on board.

Eddie

 

[mjf]

jhr has summed it up.


In my marina they have a chart pricing the fuel (at cost) with amounts against 100% red down to the 60/40% split.

A bloke filled up there, and because he had used heating all winter, and not been out ,claimed the full 100% as pure red at the low price (40 something pence).