Do raggies get 60 /40 split on fuel

seastoke said:
Or do they get more
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The declaration you make us entirely up to you. HMRC can require anyone making any declaration other than 100% for propulsion to justify their declaration. However, I understand they have made it known they will be less likely to raise questions on someone declaring 60:40, the latter part being the non duty / vat element.

If you run a RIB you would be hard pressed to show much other than 100% for propulsion. Conversely if you own and live aboard a narrow boat using red diesel for heating and not going anywhere you could easily justify 100% for non propulsion.
 
superheat6k said:
The declaration you make us entirely up to you. HMRC can require anyone making any declaration other than 100% for propulsion to justify their declaration. However, I understand they have made it known they will be less likely to raise questions on someone declaring 60:40, the latter part being the non duty / vat element.

If you run a RIB you would be hard pressed to show much other than 100% for propulsion. Conversely if you own and live aboard a narrow boat using red diesel for heating and not going anywhere you could easily justify 100% for non propulsion.
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40% reduced VAT isnt it 5% as heating your home
 
yesod said:
no. the duty rates are different, vat is 5% for both. see hmrc website: http://customs.hmrc.gov.uk/channels...PROD1_029598&propertyType=document#P101_13532
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Well i was wrong ( again :p)

So even @ the 60/40 we have paid the FULL VAT req. The split is really irrelevant we have paid the full VAT asked for
What a cock up


3.10 How do I calculate the duty due?

Duty on marked gas oil is partially rebated. The amount to be charged (the relevant rebate in the formula below) is equal to the difference between the full duty rate and the rebated rate which has already been paid. In order to charge the correct rate of duty you must do the following calculation:
Quantity in litres × Rate of the relevant rebate at the time of supply.
VAT is to be charged in addition at the appropriate rate. Guidance can be found in http://customs.hmrc.gov.uk/channels...ntent&id=HMCE_CL_000510&propertyType=document
The proportion split between propulsion and non-propulsion usage will vary, but the following example assumes a 60 per cent (propulsion) and 40 per cent (non-propulsion) split for a purchase of 100 litres of red diesel. For the purpose of the example the price of marked gas oil, before additional duty, is a notional 70 pence per litre (ppl), on which duty has already been paid at the rebated rate of 11.14 ppl. No further duty is due on the 40 per cent for purposes other than propulsion, but on the 60 per cent for propulsion the duty due is the difference between the rebated rate of 11.14 ppl and the full rate of 57.95 ppl, that is 46.81 ppl. VAT at the reduced rate is due on the full price:
Propulsion calculation (that is, 60 per cent)
60 litres @ 0.70ppl = £42.00
60 litres @ 46.81ppl = £28.08 (additional duty payable to HMRC)
VAT @ 5% = £3.50
Propulsion Total = £73.58
Non propulsion calculation (that is, 40 per cent)
40 litres @ 0.70ppl = £28.00
VAT @ 5%= £1.40
Non propulsion Total = £29.40
Transaction Total = £102.98
Duty rates can change from time to time, in particular following announcements in the Budget and Autumn Statement, and RDCOs should note their responsibility to identify and apply any changes from their effective date. That means that the new rates of duty must be accounted for and charged to your customers even if you are supplying fuel which you bought in before the rates changed.
Information on excise duty and VAT rates is available from our website or from the Helpline on 0845 010 9000.
 
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sailorman said:
Well i was wrong ( again :p)

So even @ the 60/40 we have paid the FULL VAT req. The split is really irrelevant we have paid the full VAT asked for
What a cock up
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A cock up by whom? VAT on heating fuel for your home is 5%, so why would it be any less for heating fuel for the boat?
 
This is getting confusing, I was wrong on the VAT at 20% on the 60 bit, but duty is paid on both, total duty is approx 57p on road fuel, on red diesel you pay 11p (included in the 40% bit) and the extra 46p on the propulsion bit to bring it up to the road rate. Fortunately we get VAT at 5% instead of 20% you pay on white diesel.
 
Chris_d said:
This is getting confusing, I was wrong on the VAT at 20% on the 60 bit, but duty is paid on both, total duty is approx 57p on road fuel, on red diesel you pay 11p (included in the 40% bit) and the extra 46p on the propulsion bit to bring it up to the road rate. Fortunately we get VAT at 5% instead of 20% you pay on white diesel.
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Exactly. Though total duty on Red is slightly higher than road diesel anyway. HMRC could have charged 20% VAT on the propulsion bit but simplified it to 5% on all.
 
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