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RichardW
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dougal
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 Posted: Tue Jun 19, 07 5:58 pm Post subject: |
 
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| Justme wrote: |
This is from the gov web site.
2.1 What do you mean by Biodiesel, Bioblend, Bioethanol and Bioethanol blend?
The law describes 'Biodiesel' as a diesel quality liquid fuel that is produced from biomass or waste cooking oil:
the ester content of which is not less than 96.5% by weight; and
the sulphur content of which does not exceed 0.005% by weight, or is nil.
(all uk oil meets this spec) << Inserted by Justme, **not** in the original !
'Bioblend' means any mixture that is produced by mixing:
Biodiesel; and
heavy oil that has not been charged with the excise duty on hydrocarbon oil.
'Bioethanol' means a liquid fuel:
consisting of ethanol produced from biomass; and
capable of being used for the same purposes as light oil.
'Bioethanol blend' means any mixture that is produced by mixing:
bioethanol; and
hydrocarbon oil not charged with excise duty.
LINK
Link fairy, again!
|
Yes, nothing new there whatsoever, (apart from your assertion), that is the October 2005 Notice 179E.
It is those specific references to "diesel quality" and "is produced from", right at the beginning that have caused the problems for veg oil.
The sulphur and ester specs are NOT the problem - see below.
Take a look at Para 3.5 -- it makes clear that what they call 'biofuels" can be "produced from" SVO and/or WVO.
It is important to understand that the October 2005 Notice 179E does NOT state that SVO or WVO without processing are eligible for the reduced rate of biofuel road fuel duty.
It actually means that they are NOT eligible!
In late 2005 this letter was sent out by Customs
the highlighting is by myself
| Customs wrote: |
Dear Sir
Visit *********: Production of Biofuels and Payment of Excise Duty at the Reduced Rate.
I have contacted the Mineral Oils Relief Centre in Newcastle and discussed your case. The registration issued to you is for Biodiesel not Fuel Substitutes and therefore they will have to amend your registration.
I am writing to clarify to you an aspect of HM Revenue and Customs'
policy on the acceptability of Straight Vegetable Oil (SVO) being used as a road fuel, and users paying Excise Duty at the reduced rate.
SVO does not meet the fiscal specification for biodiesel, because it is not accepted that it is a "diesel quality" fuel in the meaning given in the Hydrocarbon Oil Duties Act 1979s (2)(a).
HMRC consider that the product, vegetable oil, would require further treatment before it met the "diesel quality" criterion. Following legal advice we have concluded that vegetable oil (whether used or
unused) must be processed by some method, which converts the vegetable oil into a fuel suitable for use in a diesel engine – the only method we are currently aware of is the transesterification process.
HMRC consider that the intention of the law is to give the reduced rate to fuel produced from vegetable oil (whether virgin or recovered) and not to vegetable oil itself.
Given that you are not processing, and do not intend to process, the vegetable oils that you will be using in your vehicle in furtherance of your business. I must inform you that the fuel that you intend to process is a Fuel Substitute. Fuel Substitutes are dutiable (taxable) at the same rate as the fuel that they replace, in this case Ultra Low Sulphur Diesel.
The duty rate currently in force is £0.471, pence per litre, Tax type 545.... |
As published and discussed https://www.vegetableoildiesel.co.uk/forum/viewthread.php?tid=291
Although this would seem to be the official interpretation, some local offices may still be unaware of it!
A new version of Notice 179E has been promised.
It is to be hoped that it will clarify this matter explicitly, one way or the other, for everyone's benefit.
| Justme wrote: |
| You can also find on the gov site info on the duty rates paid currently for SVO. It was when first sorted rated higher than bio fuel but after sucsessfull attempts by a few people reduced to the same as BIO fuel. |
No, I can't find anything like that -- I understood your post to imply that *you* had found such a thing.
Factually, the "biofuel rate" was initially applied to veg oil, and the interpretation was later revised (during 2005), with the full road fuel duty being demanded by Customs.
I am not aware of any change since then.
If you have evidence of the change you claim, please show it -- lots of folk would love to see it.
| Justme wrote: |
Also EU law helps as other EU countries count SVO as BIO.
Justme
PS the gov did try to only allow rape seed oil to be counted as bio & not sunflower oil BUT thats against EU rules for fair trade. |
EU legislation actually provides considerable scope for national governments to impose taxes as they wish.
Hence the precise specification of the fuels qualifying for 27p (rather than 47p) duty per litre is a UK, rather than an EU, matter.
There are obligations to EU energy policy on biofuel use, but not on the specifications for particular tax treatment.
I wonder which specific "EU law" provisions you believe to have been accepted by HMR&C as requiring them to apply the reduced tax rate to SVO and/or WVO?
Whatever any individual, on the basis of their own scholarship, believes that EU Law should provide, unless there is something absolutely specific to be cited (and which you believe the taxman would recognise and accept), its not useful.
Realistically, we aren't going to fight a case to the House of Lords and then to the ECJ in Luxembourg.
What matters to us is what the taxman is actually applying, in practice, rather than what we think he should be applying.
I can't find anything on HMR&C's stuff that says there has been any reversal of their policy of refusing to acknowledge veg oil as qualifying for the lower tax rate.
And you'll note that they *are* keen as mustard that even the merest splash of white spirit or paraffin takes the whole batch outside the realm of "biofuel" and therefore not only the small producer exemption but actually making the whole batch liable for duty at the higher rate...
Reminder: even if claiming the small producer exemption, you still have to retain *full* records of your 'production' and 'processing' for at least six years...
I'm prepared to admit that I'd be frankly astonished if HMR&C have accepted
1/ that any or all UK veg oil, fresh or used, thereby (without even as much as an analysis of that particular batch) qualifies as a biofuel for the purposes of EITHER reduced road fuel duty OR the small producer exemption
2/ that either buying fresh veg oil from the supermarket, or just filtering used "WVO", counts as "production" for the purposes of the small producer exemption
https://www.hmrc.gov.uk/briefs/excise-duty/brief4307.htm
- - and that HMR&C have adopted these *changed* interpretations (numbered above) without themselves making explicit public announcements.
But I am prepared to be astonished! |
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RichardW
Joined: 24 Aug 2006
Posts: 8443
Location: Llyn Peninsular North Wales
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RichardW
Joined: 24 Aug 2006
Posts: 8443
Location: Llyn Peninsular North Wales
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RichardW
Joined: 24 Aug 2006
Posts: 8443
Location: Llyn Peninsular North Wales
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