Vegoil:
Legal Information
Anything used to power a vehicle on UK road roads is subject to fuel tax duty. To legally use SVO you must register as a 'fuel producer'. I phoned the national help line at HMRC ( 0845 010 9000 or alternatively on 0208 929 0152 ) and asked them to send me notice 179E and form EX103. I was informed that the forms normally take about a week to arrive.
Conversation with Dan Blackburn + supplementary information.
Monday, 1 August 2005
Form completed and posted
Friday, 5 August 2005
HMRC reply requesting additional information.
Dear Sir/Madam
Form EX103 - Excise Entry: Private Trader
Entry of premises for biofuel production and/or use - supplementary details request
Thank you for submitting your notification of premises. In order for us to
process your notification please confirm whether you wish to be registered
as a biodiesel producer or a fuel substitute producer. Please note if you wish to
register as a bioisel producer it is your responsibility to ensure the product
you are making/using meets the biodiesel specification. You must be able, if
requested, to provide evidence of this in order to qualify for the lower rate of
duty (£0.2710) otherwise you will be recorded as a fuel substitute producer and
duty on the product will normally be due at the rate applicable to the fuel it
substitutes e.g. Ultra Low Sulphur Diesel (£0.4710).
Please could you provide the following additional details to support your
application;
1. How will the biodiesel be used in the vehicle?
- Vehicle ran exclusively on biodiesel
- Dual fuel tank system
- Biodiesel added to the regular diesel already in fuel tank**
- Biodiesel mixed with regular diesel (at what ratio?) before adding to the tank**
- Other (please describe
** Before mixing with regular diesel, the biodiesel must meet the specifation
and then be 'set aside'. To 'set aside' is to declare the fuel for use as a
motor fuel, duty is accounted on the fuel at that point. Once the duty point has
been passed the biodiesel may be mixed with another duty paid product.
2. What are the ingredients to be used and from where will they be obtained?
3. What is the method used to produce biodiesel/fuel substitute?
If I do not receive a reply from you within 10 working days I will assume
that you no longer wish to proceed with your application. If you have any
queries, please contact me on ................
Monday, 8 August 2005
Reply to HMRC with additional information.
Form EX 103 – Excise Entry: Private Trader Entry of premises for biofuel
production and/or use – supplementary details request
Dear Mr. Fox
Thank you for your letter dated 2nd August 2005.
As per your request please note the supplementary details below
- I confirm that I wish to be registered as a biodiesel producer
- The product that I will be using meets your specification as a diesel
quality liquid fuel 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.
- Though I intend installing a dual fuel tank system in the near future,
initially I will be using biodiesel mixed with regular diesel before adding to
the tank. The initial mix I will be trying is 9 litres biodiesel with 11 litres
regular diesel (in a jerry can), this will be added as part of my normal 60
litre fill up. I make this ratio approx 15% bio/regular diesel.
- There is no method as such, the biodiesel I intend to use is SVO and will
be obtained from supermarkets and/or catering suppliers.
If you need clarification on any of the above points or have any further
questions I can be contacted during office hours on ..........
Wednesday, 17 August 2005
Approval received from HMRC.
Dear Sir
I acknowledge receipt of the Entry of your premises (EX103) and confirm
thatwith effect from 15th August 2005, the Commisioners regard you as a
producer of Biodisel under the provisions of the Hydrocarbons Oil Duties
Act (HODA) 1979. Your unique reference number is BD/xxx/xx.
As a revenue trader you are required to prepare and maintain accounts,
records and documents. All records should be maintained for six years.
Please see Public Notice 206 for further details. Your records should
include the following:
Receipts
Date of receipt
Amount of stock received
Purchase invoices if applicable
Biodiesel Account
Date of production
Amount produced
Usage
Date of Use
Amount of use
The account must be totalled, and the rate and amount of duty for each month
calculated. If the rate of duty changes during a month the transactions at the
different rates must be distinguished and totalled separately.
A return form, HO 930, will be despatched each month by the accounting centre,
which must be completed, detailing the quantity of chargeable Biodiesel sent out
during each calendar month. The completed return with a remittance for any duty
due in respect of the quantity shown thereon must be received by the accounting
centre, Central Deferment Office Southend, no later than the 15th day of the
following month. A return must be rendered, even when there has been no
chargeable supply in the period, in the form of a nil return. Failure to do this
could result in penalties being issued.
The Public Notices on this subject are 179E, 179F and 75. Copies are available
from the Internet from our website at www.hmce.gov.uk, alternatively from the
National Advice Service on 0845 010 9000.
The Biodiesel will be liable to the current duty at the rate of £0.2710 per
litre, this rate is subject to potential budget changes. You should also be
able to satisfy the Commissioners that your product meets the definition of
biodiesel as specified in public Notice 179E.
Please inform this office of any changes that may affect your status as a
Biodiesel producer. Should you require any further clarification with
regard to this letter, please do not hesitate to contact me.
..................
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