Fuel Duty. (UK).

Revenue & Customs biofuels simplification - Change in the way UK vegetable oil fuel duty is collected was passed in Parliament on 8th June 2007 and me into effect on 30th June 2007.

Earlier this year Revenue & Customs proposed:

A de minimis production level of 2,500 litres per annum below which producers would not need to enter premises, submit returns or pay duty (Please note: we seem to have many customers who are getting confused by Revenue & Customs use of the word "producers", we have checked and it has been confirmed that USERS and PRODUCERS can be treated, for these purposes as THE SAME), and

Reducing the frequency of returns for all but the largest producers (defined as those producing over 450,000 litres per annum) from monthly to quarterly.

Revised 12/06/07: For further info from Revenue & Customs website see the following publications:

11/06/07 Follow up to Revenue & Customs Brief 37/07 on Biofuels Simplification

08/06/07 Explanatory Memorandum Amendment

Revenue & Customs Brief 37/07 - Introduction of biofuels simplification

Biofuels and other fuel substitutes

Below are the previous proposal publications that set the background to the new rules

Summary of Responses: Review of the definition of biodiesel

Biofuels: simplification of regulations

This is fantastic news for all biofuel users or potential users, UK Revenue & Customs will introduce new rulings on the way fuel duty is handled, in effect providing you use less than 2,500 litres per annum you will not have to register or pay duty.

Whats more Diesel is over £1.00 per litre, new veg from supermarkets, cash and carry such as Costco and Macro in 20 Litre drums, or in larger quantities from wholesale suppliers and canneries such as KTC Edible Oils in larger quantities (1000 litre IBC). Oil is around 50 to 60p per litre so its half price motoring on new oil lowering to next to nothing if you reclaim and use waste oil.

To see what this will mean have a look at the table below, compare your average mpg to see how many miles or kilometres you can travel on veg oil without having to worry about fuel duty - that's right TAX FREE!! Perfectly legal.

Maximum allowable veg oil usage in Litres before having to register or pay fuel duty to UK Revenue & Customs is set at 2500 Litres Per Year, below you can see how many miles or kilometres this equates to when compared to your vehicles Miles Per Gallon
Average Miles Per Gallon	20	25	30	35	40	45	50	55	60
Miles you can run on veg oil before you have to register or pay duty:	10,998	13,748	16,498	19,247	21,997	24,747	27,496	30,246	32,995
Kilometres you can run on veg oil before you have to register or pay duty:	17,700	22,125	26,550	30,976	35,401	39,826	44,251	48,676	53,101

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