Wow, no more duty on biodiesel commencing 30th June !!!

Discussion in 'Engine' started by porka968, Jun 9, 2007.

  1. porka968

    porka968 New Member

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    Wow, no more duty on biodiesel commencing 30th June !!!

    http://www.dieselveg.com/

    Had a look on the hmrc website and its true !! its in the whats new section for 8th June.

    So basically, for own use below 2500l per year you no longer have to pay a penny :D
     
  2. Parrot of Doom

    Parrot of Doom Hardcore MB Enthusiast

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    Does this mean that if I fill up with SVO I don't have to pay duty (yes I'm aware of the technical issues)?

    Because if it does, its fantastic news and mine will be getting converted!
     
  3. OP
    OP
    porka968

    porka968 New Member

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    From what I understand, yes :)
     
  4. Dieselman

    Dieselman Banned

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    No it's not. SVO is classed as a 'Fuel Substitute' so attracts the full 48.3ppl duty rate.

    HERE

    I can't find the information referring to the scrapping of Bio duty. I'll ask my supplier, that should bring the cost down a bit.:)
     
  5. stever

    stever Hardcore MB Enthusiast

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    A work colleague of mine has a letter from her MP confirming that vegetable oil is currently payable at the lower 28p rate (following a couple of test cases where HMRC lost) and will be duty free this summer, as per biodiesel.
     
  6. Parrot of Doom

    Parrot of Doom Hardcore MB Enthusiast

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    Unfortunately the word of any MP doesn't carry nearly as much weight as the word of the taxman.
     
  7. stever

    stever Hardcore MB Enthusiast

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    As far as I know the taxman now accepts the lower rate. As I said, the HMRC line was challenged and they have backed down.
     
  8. Dieselman

    Dieselman Banned

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    It appears this is for producers of under 2500 litres per annum only. Basically they don't need to register with HMRC as a fuel producer.

    I should know more tomorrow as a letter is going out from HMRC today to all registered producers.
     
    Last edited: Jun 14, 2007
  9. PeterE320Cdi

    PeterE320Cdi Hardcore MB Enthusiast

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    Have you heard back from the supplier yet Dieselman?

    I am interested in converting as I have just accepted a new job which is going to mean my commute goes up to 600 miles per week so £400 to convert to veg oil seem good value compared to the fuel bills I will be getting.

    Thanks, Peter.
     
  10. glojo

    glojo MB Club Veteran

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    More to the point what about the MP?:devil: :)

    John
     
  11. Karl

    Karl Active Member

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    There's no need to register or pay any duty on the vegetable oil from 1st July 2007.
    HMRC will expect you to keep accurate records for 6 years of the fuel you have used/produced.
    I have recently converted my E300D to run on WVO. I added a VOW2+ electric and water fuel heater and an additioinal water to fuel heat exchanger immediately before the fuel filter.
    Runs like dream on 90% veg and 10% diesel.
    Every mile is a smile at 10p per litre.
    Even Lidl's finest SVO at 59p per litre is a good saving.
    The exhaust fumes make you hungry though.

    Good Luck

    Karl
     
  12. Sp!ke

    Sp!ke Administrator Staff Member

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    Where are you getting your oil from at 10p per litre?
     
  13. Dieselman

    Dieselman Banned

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    Nice one..;)
     
  14. Dieselman

    Dieselman Banned

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    Definately producers of less than 2500 litres per year don't have to register. That's about enough for 20,000 miles p.a.

    Only Biodiesel is covered as WVO/SVO don't get the reduced tax rate anyway as they don't meet the criteria for diesel fuel.

    I pay 79.5 duty paid for B100.
     
  15. recycled

    recycled Hardcore MB Enthusiast

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    Great news for biodiesel users. I still have my reservations though.
    if everyone suddenly switches, what do you think might happen with the treasury coffers.
     
  16. OP
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    porka968

    porka968 New Member

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    Get onto HMRC website and do some research.. the 2500l covers biodiesel AND biofuel. Svo IS a biofuel ! More specifically, there are a number of forum discussions where people that have legally been using svo after paying the duty have had letters confirming they no longer need to do this.

    I am hapily running my c250td on a mix of 20l veggie + 1l unleaded with no modifications whatsoever.

    The only problems were expected due to the increased pressure in the fuel lines and the fact that veggie does a good job of cleaning out the fuel system. Basically I replaced all the o-rings on the fuel lines, the fuel return lines on the injectors, and a mandatory fuel filter change after the first tank of veggie. The car has been running perfectly ever since.

    Macro is selling 20l veg at £9.85, thats basically 49p per litre. Add 1l of unleaded to the mix, and your still motoring for only 51.5p per litre. Its possible to go way cheaper using WVO, but at 51.5p im hardly complaining.
     
    Last edited: Jul 12, 2007
  17. W210 Fan

    W210 Fan Hardcore MB Enthusiast

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    There is a small business opportunity for you here if I buy a 300TD, where abouts are you? at 10p a litre im sure other people would like access to your wisdom
     
  18. Karl

    Karl Active Member

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    I have also used the 20litre of SVO to 1 litre of unleaded petrol mix and it works a treat.
    You can get pure corn oil from Lidl for 50p a litre. Seems to give better performance than rapeseed or soya oil.

    Worth a try?

    Karl
     
  19. rcflyers

    rcflyers New Member

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    Hi all, I emailed HMRC with the following:

    "Dear Sirs,

    I am writing to you for clarification on a recent change in the law regarding duty payable on using vegetable oils as road fuel which came into effect on 30th June 2007.
    I want to use ordinary SVO (new and unused rapeseed vegetable oil, i.e. Tesco cooking oil) as a road fuel in my diesel car.
    Can I use less than 2500 litres per annum and not pay any additional duty?
    (i.e. is this type of vegetable oil exempt from any duty as long as the 2500 litre per annum limit is not exceeded?)
    I tried ringing your 0845 advice line but a definite and clear answer was not available to me.
    Do I need to register in any way to use the above fuel substitute?
    Please clarify the law as far as the above is concerned."


    Today I received the following reply:


    "Date 20 July 2007

    Reference xxxxx

    Dear Mr xxxxxxxxx

    Vegetable Oil/DERV mixture

    Thank you for your e-mail dated 15 July 2007 regarding the use of vegetable oil and DERV mixture in your car and whether you have to register with H M Revenue and Customs [HMRC].

    The changes brought in under the ‘Biofuels Simplification’ [Revenue and Customs Brief 43/07] whereby producers of biofuels (or other fuel substitutes) who produce (or use) less than 2,500 litres per annum, will no longer be required to make entry, render returns or pay duty, are intended to cover both those who produce or use biofuels (such as biodiesel, or bioethanol), and those who produce or use other ‘fuel substitutes’ (such as vegetable oil).

    Anyone producing (or using) more than 2,500 litres per annum will have to make entry of their premises (register), render returns and pay duty.

    Where producers or users will exceed 2,500 litres per annum, then they need to make entry of their premises, render returns and pay duty in accordance with Public Notice 179e (which is currently being amended to reflect the recent changes).

    For those producers who are ‘registered’ there will remain a continuing requirement for them to show that the fuel that they produce (or use) is Biodiesel (and meets the fiscal definition in HODA) and where this is not the case, they will continue to be liable to the higher rate of duty on the biofuel they produce (or use) at the higher Fuel Substitute rate.

    Revenue and Customs Brief 43/07
    http://www.hmrc.gov.uk/briefs/excise-duty/brief4307.htm

    Public Notice 179E
    http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageLibrary_PublicNoticesAndInfoSh eets&propertyType=document&columns=1&id=HMCE_CL_000205

    I hope the above information is satisfactory, but if you have any further queries regarding this matter, please do not hesitate to contact the address shown above quoting our reference number.

    Yours sincerely



    Mr D J Emmerson
    Written Enquiries Officer"


    Now, my belief is that if I use below 2500 litres per annum I can use any "fuel substitute"(obviously not Red Diesel or paraffin, etc), only if I use over the 2500 litres per annum do I have to register AND show that the fuel meets the fiscal? specification.

    Any comments?
     
  20. kikkthecat

    kikkthecat Hardcore MB Enthusiast

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    One drawback of everyone switching to biofuels.

    Higher food costs

    The more land that is taken out of food production, the more food costs and somehow in there it's all the fault of the Chinese :crazy:
     

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