Claiming duty back on diesel?

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MINESAPINT2

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Can someone run me through the procedure and tell me who I should contact to claim my duty back.

If my understanding is correct I can claim a percentage (25%???) of duty back if I have a diesel heater aboard???.

Thanks

Mike
 
If you buy heating fuel for your home you buy it as such & automatically pay 6% ( think that is the rate ) VAT
If you buy white diesel from a garage for your boat then there is no facility ( for a private consumer) to re claim the duty that i am aware of
if you are UK marina based & buy red diesel then you buy it either for propulsion of for charging or for domestic use ( assuming that you are not a commercial user) ie heating. When you purchase it you advise the supplier of the percentage you intend to use for propulsion & the percentage you use for domestic purposes & he adjusts the duty accordingly.
To make things easier HMRC have agreed that 60/40 is in many cases a fair proportion. However, that has to have some basis for proof by the user. Ie if you use solar cells for charging & do not have hot water system or heating then it would be difficult to justify a reduction in duty!!! Effectively you do not pay the duty in the first place
As far as I am aware ( Of course I may be wrong here so others may correct me) there is no facility for a non VAT registered entity to reclaim duty on fuel once you have paid it
 
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As far as I am aware, you don't claim the duty back, you simply don't pay it on the proportion of the fuel that you state will be used for heating, at the time of purchase.
 
Just read something written by the RYA on this very subject and at the moment am a long way from understanding it. I am sure someone on here will help me out please!

Just to be clear I have a small sail boat for recreational purposes in UK for coastal cruising.

One thing I have learned (I think) that providing we stay in UK waters we are allowed to have red diesel in our tanks. I was of the opinion I should be buying white and living in fear of being dipped.

However having bought red that has a lower level of duty on it than white we must pay HMRC the extra duty. There is an example for 100 litres of red diesel. The 60% propulsion/40% heating, lighting etc is used and the extra duty is about 40p/ltr. We would only pay the extra 40p/ltr on the portion used for propulsion. 60 litres x 40p = £24.

I think I read we must not use red diesel that contains bio diesel????

Anything making sense?

Mike
 
Daydream believer said:
If you buy heating fuel for your home you buy it as such & automatically pay 6% ( think that is the rate ) VAT
If you buy white diesel from a garage for your boat then there is no facility ( for a private consumer) to re claim the duty that i am aware of
if you are UK marina based & buy red diesel then you buy it either for propulsion of for charging or for domestic use ( assuming that you are not a commercial user) ie heating. When you purchase it you advise the supplier of the percentage you intend to use for propulsion & the percentage you use for domestic purposes & he adjusts the duty accordingly.
To make things easier HMRC have agreed that 60/40 is in many cases a fair proportion. However, that has to have some basis for proof by the user. Ie if you use solar cells for charging & do not have hot water system or heating then it would be difficult to justify a reduction in duty!!! Effectively you do not pay the duty in the first place
As far as I am aware ( Of course I may be wrong here so others may correct me) there is no facility for a non VAT registered entity to reclaim duty on fuel once you have paid it
Click to expand...

I used to be a commercial fisherman and used to claim duty back from HMRC. I now understand the system for recreational boating differs.

Mike
 
You declare your intended usage at point of purchase. My last 3 fills have been declared at 0% propulsion as I've not moved from my mooring. The next will be 30/70% as I will be moving the boat to a new mooring.
If you buy white diesel there is no way you can claim anything back. it is up to you what percentage you wish to declare for proplusion but it has to be done at time of purchase.
The supplier can not legally dictate the % split its all up to you.
 
Loddon said:
You declare your intended usage at point of purchase. My last 3 fills have been declared at 0% propulsion as I've not moved from my mooring. The next will be 30/70% as I will be moving the boat to a new mooring.
If you buy white diesel there is no way you can claim anything back. it is up to you what percentage you wish to declare for proplusion but it has to be done at time of purchase.
The supplier can not legally dictate the % split its all up to you.
Click to expand...

I guess you have your diesel delivered in reasonable quantities?. I buy mine in 2 x 10 litre containers. I have been buying at local filling station red @63p litre but will ask at the marina if they will charge me according to my stated useage.

Mike
 
Loddon said:
The supplier can not legally dictate the % split its all up to you.
Click to expand...
But in reality some retailers offer the 60 40 split only. That is more than fair for most boats unless they are livecaboards that go nowhere.
 
MINESAPINT2 said:
I guess you have your diesel delivered in reasonable quantities?. I buy mine in 2 x 10 litre containers. I have been buying at local filling station red @63p litre but will ask at the marina if they will charge me according to my stated useage.

Mike
Click to expand...

63p must be already 100 percent at the domestic rate and may not legally be used for propulsion.
 
MartynG said:
63p must be already 100 percent at the domestic rate and may not legally be used for propulsion.
Click to expand...

I am sure this is the case. That is why there is a notice on the pump "not for marine use"!. A pal of mine buys his red diesel off a farmer and recently advised me he pays about 40p litre.

Mike
 
At 63p I wouldn't bother to change a thing unless of course you are worried that the tax man may come after you for not paying the full tax. My fuel is delivered by boat as I am on inland waters normally about 100litres a time and at more than 63p even at 100% domestic use.
 
MINESAPINT2 said:
I guess you have your diesel delivered in reasonable quantities?. I buy mine in 2 x 10 litre containers. I have been buying at local filling station red @63p litre but will ask at the marina if they will charge me according to my stated useage.

Mike
Click to expand...

I wouldnt shout too loudly about that if I was you:rolleyes:
 
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