Red diesel enforcement

red_diesel

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Just been talking to a couple of guys at the marina which has got me thinking. One chap who works at the Revenue says he is convinced that red diesel for leisure boats will continue, albeit at a higher duty as it is the easiest solution but potentially impossible to police as you will have 2 very different taxes on identical fuel. He also points out that HMRC resourses are over-stretched as it is. Another chap says he has been using heating oil or gas oil in his boat for years decanted from his heating tank at home and thinks he can continue to do so. Surely he will be breaking the law, but then I wonder how HMRC would be able to detect this or am I missing something here?
 

Chris_d

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It is illegal but its not a big problem for the Revenue really is it, most boaters are going to have great difficulty refueling from their home heating tank, when pulling into a strange marina somewhere around the coast. How much does this chap use, i bet its not that much, 100gallons pa? the reveune aren't going to worry about chasing 50 odd quids lost tax are they.
 

red_diesel

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I think he gets through a lot more than 100 gal pa given that he seems to be out on his boat most weekends, and always brings down a couple of big jerry cans. I expect he he also buys diesel from marinas on longer trips as well. Interestingly he says that the current duty is just the same for red diesel or gas oil, so apparently he pays virtually the same price as some of the more competetive boatyards, but unfortunately for him the local fuel barge charges a hefty premium (think he said about 62p/l compared to say 45p/l in the Solent) hence the jerry cans. So if the duty is currently the same, not sure why it should be ilegal? Obviously after Nov 2008 it would be ilegal, but my point is how would it be detected if we are still using red? I am not suggesting for one moment that anyone should break the law, but when the difference in duty from next November is potentially as big as the government proposes, the temptation must be quite large.
 

red_diesel

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Intersting reaction from different people! I am sure, in fact I know that HMRC is well aware of the likely misuse of diesel, but is potentially being put in a postion by our government of having unenforceable tax laws. Personally I think that if the duty was increased to the minimum EU level then most boaters would not bother, but faced with diesel prices more than doubling, nobody can blame people for avoiding an unreasonable and unjust tax increase. I am certainly not suggesting that anyone on this forum should or would avoid paying the extra duty, and I do not personally work for HMRC!
 
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