car broke down on way home

goonarmy

Paradigm wrote: »

I suppose it depends on where you get it from, most construction/farm equipment costs a pretty penny & I doubt they will be using "manky" diesel.

One of the best places to source it is a marina (if you're so inclined )

You must have never rented off aplant or speedy then;)

snowcat75

Paradigm wrote: »

Red diesel is available at most/all marinas but full duty is applied to diesel used for "cruising"....fuel used for cooking or heating is exempt & sold at the normal low rate.

Heating oil is kerosene and is not the same is diesel nor does it have the same duty rate although this can change with the lts bought in any one time, some large boilers can run both, however kero offers more BTUs for less money. small domestic boilers are not usually equipped to run red mine is not.

There is no such thing as a duty free oil, It all has a duty rate, even heavy oils, bio fuels, etc will have a revenue put on them, its just the rate applied. and like everything is changed yearly.

My workshop heater will burn anything inc veg oil, and waste oil, but I have to apply for an EA licence to do so.

You can easily buy red , its not illegal to do so but as I said its not a highway fuel .. generally the cars are sized and the owner is made to pay back the revenue.

What I don't understand is how a Marina can sell Red and charge duty on it???? if it has duty its white. If its not its red, the reason for dyeing it is so HMRC can instantly tell the difference. If that was the case I could fill my truck, from our bulk tank of red and pay the duty on it, It would be massively open to abuse.

HMRC don't even allow duel tanks(Red and white) on machines used for haulage and off road as it was too open to abuse.

arcon5

spacey2012 wrote: »

A company claims fuel as tax expendable.
So no benefit to running red.
.

That doesn't even make sense.
Any logical person would happily pay an extra £2k in tax for example if it meant saving £10k in expenses (£8k net) than spend £10k more just because its a tax deductible.

Paradigm

snowcat75 wrote: »

What I don't understand is how a Marina can sell Red and charge duty on it???? if it has duty its white. If its not its red, the reason for dyeing it is so HMRC can instantly tell the difference. If that was the case I could fill my truck, from our bulk tank of red and pay the duty on it, It would be massively open to abuse.

The EU Energy Products Directive provides that from 1 November 2008:-

• The full rate of duty is to be applied to fuel used for “the purposes of navigation” (which has been reflected in UK law as “fuel for propelling” of private pleasure craft
• Red diesel at the rebated rate of duty can continue to be used for domestic purposes aboard a boat such as heating, lighting electricity generation, refrigeration, air conditioning or hot water;
• Customers purchasing fuel will be required to make a declaration about their fuel usage; and
• Fuel suppliers will need to become Registered Dealers in Controlled Oils (RDCO’s) and will return the duty collected to HMRC.

http://www.britishmarine.co.uk/what_we_do/external_relations/campaigns/red_diesel.aspx

snowcat75

Paradigm wrote: »

[/LIST]http://www.britishmarine.co.uk/what_we_do/external_relations/campaigns/red_diesel.aspx

So its an averaging calculation rather than a direct collection of taxation being collected per lt ,averaging is common in tax law and works with lots of things.

I do exactly the same with tax on fuel usage, as although all the partners have pool cars for business use there is some domestic usage, HMRC allows this, the percentage is decided with the accountant on the yearly valuation..

One things crystal clear however Red is not for the general public to run cars on, doing so is illegal.

Paradigm

snowcat75 wrote: »

So its an averaging calculation rather than a direct collection of taxation being collected per lt ,averaging is common in tax law and works with lots of things.

I'm not an accountant so haven't got a clue what the difference is.

What I do know is that you have to declare the usage when buying & the marina will charge full duty on the fuel declared as being used for propulsion, so if I buy 100 litres & say that 50% is for propulsion I'll have to pay full duty on 50 litres, doesn't sound like "averaging" to me....... but like I said, I'm not an accountant