RED - the confusion continues ?

[Seadee]

Following on from earlier posts including the gentle ribbing of MBM for not delaying the print of the mag for HMRC to conclude their deliberations /forums/images/graemlins/grin.gif ... I'm not sure that everyone isn't still getting confused over this ?

My understanding is that all fuel will now definitely be VATable at 5% regardless of propulsion or domestic use. That bits easy. Thats doesn't mean that our only increase is 5%.

The propulsion element (which the HMRC is suggetsing is 60% of the fill) will additionally be increased by the full rate of duty which is something close to 40ppL.

If you take Shotley marina right now it's 83ppL. Assuming nothing changes to the base price, for 100L I'll be paying 83 plus 40 ppl (123 ppl) for 60L and 83ppL for 40L. That's £73.80 for the propulsion and £33.20 for the heating, giving a bill of £112.35 including the 5% VAT. Right now I'd be paying £87.15 including the 5% tax (which oddly we've been being charged since time began ?).

Therefore, for Shotley, the overall ppL has increased from 87.15 pence per L to £1.12 per L. That's still a 29% increase on 1st November.

Admittedly it's not as bad as first thought but I can't help but think that peeps on here think the increase is just 5% ?

Maybe I'm wrong. It's still not good news.

CD /forums/images/graemlins/confused.gif

 

[mjf]

This is also posted on another 'fred eh???????

 

[rickp]

[ QUOTE ]
Admittedly it's not as bad as first thought but I can't help but think that peeps on here think the increase is just 5% ?

[/ QUOTE ]

No - I don't think people think that. The confusion is because HMRC had originally said the propulsion element would attract 17.5% vat. That makes the sums a bit complicated. At 5% vat, it becomes an easy fixed amount per/litre to be added to the price depending on the amount claimed for propulsion.

For 60/40 - its 25.6p/litre extra (0.6*40.66*1.05).

Rick

 

[volvopaul]

MDL berth holders, me includede have recieved a letter helping us stating the facts on the change and have offered club outlook holders the 10% discount on fuel, they have also informed us that the pumps on the hamble will remain open for longer hours in order for us to "top up" before the hike.

Well done MDL , you wil make even more money out of us before the hike too!

 

[jfm]

Quote "I can't help but think that peeps on here think the increase is just 5% "

Blimey, er, no-one who's been following the many threads on here thought that. (Except perhaps you /forums/images/graemlins/grin.gif /forums/images/graemlins/grin.gif)

 

[ari]

Bottom line is, forget all the calculations and percentages and whatnot, the ONLY number that matters is how much the darned fuel has gone up by!

(Err, how much is that by the way? Sorry, not been paying attention /forums/images/graemlins/grin.gif)

 

[Seadee]

Well I bow to your better judgement. I've understood all along where this was and is going, it's no surprise. I agree with the 17.5% verses 5% debate but I sensed a greater relief than 12.5% in a thread from yesterday. Maybe it's just me and my public spirit ? I'll get back to some work now that I've managed to clog the forum up with another pointless mail.

Taking 30 lashings for the mistake .. /forums/images/graemlins/wink.gif

CD