Avoiding paying the 60/40 split price - its a bit of a mess.

[burgundyben]

The place I buy diesel from gave me a little card with a number on it, lets say its 99, I quote 99 each time I fill, a record is kept of my details and each time I buy fuel quoting 99 allows them to cross reference my details with fuel purchased (tax paid) so they have a record.

Suppose I one day mistakenly quote the incorrect number? Maybe, say 100? Perhaps the owner of 100 is coded for charter and gets a rebate? He gets a refund of tax I have paid?

Supposing I tell the fuel seller that I am coded for charter? And pay the lower price? and then mistakenly quote the 100 number? There is no record that I have bought fuel at the lower price as their records are incorrect?

I'm just musing.

 

[benjenbav]

That's just like saying s'pose you're a self employed painter and decorator and you mistakenly declare that on your tax return that you did 50 jobs last year and made £30,000 rather than 51 and made £31,000.

Unlikely that HMRC will care enough to bother to go through your receipts and make an issue about it but the possibility means that you tend to be careful about having the right records.

Same with any self assessment system really.

 

[Deleted User YDKXO]

The place I buy diesel from gave me a little card with a number on it, lets say its 99, I quote 99 each time I fill, a record is kept of my details and each time I buy fuel quoting 99 allows them to cross reference my details with fuel purchased (tax paid) so they have a record.

Suppose I one day mistakenly quote the incorrect number? Maybe, say 100? Perhaps the owner of 100 is coded for charter and gets a rebate? He gets a refund of tax I have paid?

Supposing I tell the fuel seller that I am coded for charter? And pay the lower price? and then mistakenly quote the 100 number? There is no record that I have bought fuel at the lower price as their records are incorrect?

I'm just musing.

By the sound of it, the weakness in the system is not the 60/40 split per se but the card system which allows you to misrepresent who you are. If the fuel seller required you to give full personal details and some form of id every time you filled up, then it wouldn't be possible to misrepresent yourself but, presumably, the card system is there to save the fuel seller time and admin costs
IMHO, at some stage in the future, some keen HMRC inspector is going to go on a fishing expedition (as they do with general tax liabilities) and investigate a few selected boat owners and their fuel usage. If any anomalies are found, then they will be made an example of, pour discourager les autres

 

[Dave_Snelson]

The place I buy diesel from gave me a little card with a number on it, lets say its 99, I quote 99 each time I fill, a record is kept of my details and each time I buy fuel quoting 99 allows them to cross reference my details with fuel purchased (tax paid) so they have a record.

Suppose I one day mistakenly quote the incorrect number? Maybe, say 100? Perhaps the owner of 100 is coded for charter and gets a rebate? He gets a refund of tax I have paid?

Supposing I tell the fuel seller that I am coded for charter? And pay the lower price? and then mistakenly quote the 100 number? There is no record that I have bought fuel at the lower price as their records are incorrect?

I'm just musing.

I suppose you could even more easily have represented yourself as 66 - but that wasn't the answer you were looking for was it?

 

[ian38_39]

As I understand it you could just quote that you don't go anywhere and it is all for domestic use, it is down to the individual to declare whatever split they want. If you were then to give a false name and cover your boat name then who would know.

Sooner or later Mr HM tax inspector will knock a few doors and if you have a few reciepts for 60/40 on board it is going to be hard to prove.

Trouble is if this becomes common practice then everyone will end up paying 100% tax.

Play by the rules and there is half a chance that diesel in the UK will stay roughly the same price as the rest of europe, cheet and everyone will pay.

Ian