Fuel prices 60/40 split

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Nigbb

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Can anyone enlighten me re fuel for pleasure craft in the UK, all of my recent years of boating has been bareboat chartering in the Med so fuel usage is light and supplied with the rental anyway so I have never given any thought to it.
I have just purchased a sports cruiser here in UK and I Know there is some sort of split duty scheme depending on fuel for propulsion and fuel for domestic use, what are the rules, also are these rules changing soon anyway?
 
Despite what some appear to think the rules in mainland U.K. are not going to change as far as leisure boaters are concerned as we will still be able to use red diesel. N. Ireland is different due to Brexit and the border situation, which means that they will not be able to use red after a date in April. I think there is a scheme that will enable them to deal with the duty issue in a similar way to the mainland.

The rules are that you don’t pay full duty on fuel used for non-propulsion (heating, cooking) and you have to declare what proportion you used for each at the point of purchase. HMRC accept that 60% propulsion and 40% non-propulsion is the norm (let’s not argue that) and they will not investigate such cases and as such it is pretty much the default position at the pumps. If you declare a higher proportion of non-propulsion use then in theory HMRC could investigate and you would have to show why you claimed that particular amount.

Hope that helps.
 
Greg2 said:
Despite what some appear to think the rules in mainland U.K. are not going to change as far as leisure boaters are concerned as we will still be able to use red diesel. N. Ireland is different due to Brexit and the border situation, which means that they will not be able to use red after a date in April. I think there is a scheme that will enable them to deal with the duty issue in a similar way to the mainland.

The rules are that you don’t pay full duty on fuel used for non-propulsion (heating, cooking) and you have to declare what proportion you used for each at the point of purchase. HMRC accept that 60% propulsion and 40% non-propulsion is the norm (let’s not argue that) and they will not investigate such cases and as such it is pretty much the default position at the pumps. If you declare a higher proportion of non-propulsion use then in theory HMRC could investigate and you would have to show why you claimed that particular amount.

Hope that helps.
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Thanks for confirming that, so when I get fuel will they ask me if I want split duty or do I need to make it clear first? How does it work at the fuel jetty?
 
Our marina Post the prices for propulsion - 60^40 and heating. reason being that not all boats use diesel for propulsion ie petrol engine, or use diesel for propulsion and no diesel heating or cooking, while some like an old one of ours was petrol with a separate tank for diesel heating ! make sure to tell them what you want.
liveaboards use far more fuel for heating and cooking than in a normal cruiser etc.
 
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IDAMAY said:
You will be asked to sign a declaration specifying the split. The responsibility is yours. I understand that a minority of marinas will only supply diesel at 60/40 split. Most will ask you to specify the split.
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I see, thanks for that.
Cheers Nigel
 
Nigbb said:
Can anyone enlighten me re fuel for pleasure craft in the UK, all of my recent years of boating has been bareboat chartering in the Med so fuel usage is light and supplied with the rental anyway so I have never given any thought to it.
I have just purchased a sports cruiser here in UK and I Know there is some sort of split duty scheme depending on fuel for propulsion and fuel for domestic use, what are the rules, also are these rules changing soon anyway?
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The 60:40 split is for red diesel only. On petrol you pay the full road fuel duty. You are free to declare an alternative split to the fuel seller, for example if the boat is on a delivery, where you would pay commercial use duty.
 
Theoretically, surely 100% is impossible unless you are permanently berthed to a fuel pontoon (or your fuel is delivered)?
 
Agreement at our club AGM that our fuel officer will only supply fuel, be it club members or visitors , at the 60/40 split.
Unfortunately there were one or two "free spirits" , who felt they did not need to operate within the spirit of the derogation.
This could have affected our ability to supply fuel, which would have had a most serious effect on the vast majority of other skippers in the club.
 
oldgit said:
Agreement at our club AGM that our fuel officer will only supply fuel, be it club members or visitors , at the 60/40 split.
Unfortunately there were one or two "free spirits" , who felt they did not need to operate within the spirit of the derogation.
This could have affected our ability to supply fuel, which would have had a most serious effect on the vast majority of other skippers in the club.
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How would someone’s declaration affect your club’s ability to supply?

Just asking
 
Sneds said:
How would someone’s declaration affect your club’s ability to supply?

Just asking
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One of the many benefits of the club offered to members (and overnight visitors) is the ability to supply derogated fuel from our own bunker literally at cost .
The cost is considerably below the price charged at all of the nearbye marinas.
As time went on it appeared that the derogation regards the 40% heating element was widely being abused elsewhere and one or two folks felt that they would take advantage of the situation at home.
The club took legal advice and were told (RYA) we cannot prevent skippers from filling their tanks entirely with fuel at the 40% rate and using it all for propulsion, provided they claim/sign it is all for heating.
The vast majority of the club thought this was taking the piss out of a situation where we might well have ended up paying the sorts of duty due on white road fuel but for HMG allowing leisure boaters a little leeway.
Worry was, at some point, on investigation , we could could lose the privilege to sell fuel, simply due to the abuse of the 60/40 rule.

Club decided that we will only supply fuel at 60/40 rate and that any club member unhappy would be perfectly entitled to challenge the club legally and / or to bunker elsewhere .
To date nobody has done so.
 
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MartynG said:
Any retailer may decide this and is not breaking any law.
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100% correct.
Both the RYA and those we pay our fuel duties to , have stated same.
The derogation could/will be withdrawn and may replaced at some point in the future with something else ?
Especially with the current situation elsewhere.
We basically wish to comply with the spirit of the derogation, if it is to be withdrawn it would be preferable that it was not because of anything that the boating community deliberately caused. ?
There always those who, if given a metre will take a kilometre, to the detriment of all ?
 
gordmac said:
Out of interest, what is the penalty if you get caught?
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Don't really know to be honest, but i do know that 99% of every boat owner and marina owner ive spoken to most boats here are filled to the gunnels with red, so will take a season or 2 in some cases to deplete that,.
Given that a lot may refill with white when top up required the taint of red will still be there. Who is going to enforce fines for that i wonder? the DVLA have never been successful in riding cars from using red with very little resources available, i cannot see how they will police the amount of boats here to any great success.
I for one will not be dumping red to fill with white, i have mine filled with some green ( boat was bought in ROI) and i also have 200ltrs or so of red in barrels waiting to top up, all bought before the rules applied of course :)
 
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