[FONT="]Hello all,
[/FONT][FONT="]As the title suggests i want to talk about Waste Motor oil as fuel. I've read and reread the[/FONT][FONT="] HMRC Reference:Notice 179e Biofuels and other fuel substitutes and also this which says.[/FONT][FONT="]
[/FONT][FONT="]"Production of hydrocarbon (mineral) oils
If you produce hydrocarbon (mineral) oils in the UK, you must register your premises and plant with HMRC as an oil producer.
If you produce certain oils - generally those that are liable for Fuel Duty - you must also store these oils in premises that are approved by and registered with HMRC as an excise warehouse."
[/FONT][FONT="]But the HMRC Reference Notice 179e. section 21 defines[/FONT][FONT="]
[/FONT][FONT="]
[/FONT][FONT="]"[/FONT][FONT="]'Bioblend' means any mixture that is produced by mixing: [/FONT]
[/FONT][FONT="]2.2 Other fuel substitutes[/FONT][FONT="]
[/FONT][FONT="]Any liquid that is not hydrocarbon oil, biodiesel, bioblend, bioethanol or bioethanol blend but is used in place of mineral oil to fuel any engine, motor or other machinery is classed as a fuel substitute. Please see paragraph 3.1.1 for further details. This includes:[/FONT][FONT="]
[/FONT][FONT="]any liquid used as a fuel in place of mineral oil[/FONT][FONT="]
[/FONT][FONT="]any liquid which is used as an additive or extender to a mineral oil, or[/FONT][FONT="]
[/FONT][FONT="]any liquid which is used as an additive or extender in a fuel substitute[/FONT][FONT="]
[/FONT][FONT="]However, water is not considered to be a fuel substitute when used in a diesel emulsion when the emulsion is stabilised with additives. Duty is charged only on the non-water part of the fuel. [/FONT][FONT="]
[/FONT][FONT="]
[/FONT][FONT="]It also says that...[/FONT][FONT="]
[/FONT][FONT="]4.2.1 Exempt producers/users
If you have produced or used less than 2,500 litres of:
any biofuel, or
any other fuel substitute or additive
within the last 12 months, and/or expect to produce or use less than 2,500 litres in the next 12 months, you are an exempt producer and do not need to register with us and account for duty. However, there are simple record keeping requirements, which are described in paragraph 4.9.1.
Production includes the manufacture or processing of road fuel, and the setting aside of any product that has not been charged with duty, with the intention of using it as road fuel.
[/FONT][FONT="]
[/FONT][FONT="]OK so does that mean this assumption is correct?.
[/FONT][FONT="]
[/FONT][FONT="]If i make bioblend ie mixing SVO or WVO with WMO and other additives to mae fuel, 2500l of this will be Tax free after that it will be liable to £0.579 tax per liter.
[/FONT][FONT="]
[/FONT][FONT="]But if i were to make fuel using WMO alone with other additives to make fuel I would have to register my premise as an oil producing plant and pay tax at £0.579 per liter.
Sorry of quoting loads and not really asking a question i just want to understand the tax implications before i spend any money on the kit needed to produce fuel.
Cheers for your readings.
Ole[/FONT]
[/FONT][FONT="]As the title suggests i want to talk about Waste Motor oil as fuel. I've read and reread the[/FONT][FONT="] HMRC Reference:Notice 179e Biofuels and other fuel substitutes and also this which says.[/FONT][FONT="]
[/FONT][FONT="]"Production of hydrocarbon (mineral) oils
If you produce hydrocarbon (mineral) oils in the UK, you must register your premises and plant with HMRC as an oil producer.
If you produce certain oils - generally those that are liable for Fuel Duty - you must also store these oils in premises that are approved by and registered with HMRC as an excise warehouse."
[/FONT][FONT="]But the HMRC Reference Notice 179e. section 21 defines[/FONT][FONT="]
[/FONT][FONT="]
[/FONT][FONT="]"[/FONT][FONT="]'Bioblend' means any mixture that is produced by mixing: [/FONT]
- [FONT="]biodiesel, and[/FONT]
- [FONT="]heavy oil that has not been charged with the excise duty on hydrocarbon oil[/FONT]
- [FONT="]the ester content of which is not less than 96.5 per cent by weight, and[/FONT]
- [FONT="]the sulphur content of which does not exceed 0.005 per cent by weight, or is nil[/FONT]
[/FONT][FONT="]2.2 Other fuel substitutes[/FONT][FONT="]
[/FONT][FONT="]Any liquid that is not hydrocarbon oil, biodiesel, bioblend, bioethanol or bioethanol blend but is used in place of mineral oil to fuel any engine, motor or other machinery is classed as a fuel substitute. Please see paragraph 3.1.1 for further details. This includes:[/FONT][FONT="]
[/FONT][FONT="]any liquid used as a fuel in place of mineral oil[/FONT][FONT="]
[/FONT][FONT="]any liquid which is used as an additive or extender to a mineral oil, or[/FONT][FONT="]
[/FONT][FONT="]any liquid which is used as an additive or extender in a fuel substitute[/FONT][FONT="]
[/FONT][FONT="]However, water is not considered to be a fuel substitute when used in a diesel emulsion when the emulsion is stabilised with additives. Duty is charged only on the non-water part of the fuel. [/FONT][FONT="]
[/FONT][FONT="]
[/FONT][FONT="]It also says that...[/FONT][FONT="]
[/FONT][FONT="]4.2.1 Exempt producers/users
If you have produced or used less than 2,500 litres of:
any biofuel, or
any other fuel substitute or additive
within the last 12 months, and/or expect to produce or use less than 2,500 litres in the next 12 months, you are an exempt producer and do not need to register with us and account for duty. However, there are simple record keeping requirements, which are described in paragraph 4.9.1.
Production includes the manufacture or processing of road fuel, and the setting aside of any product that has not been charged with duty, with the intention of using it as road fuel.
[/FONT][FONT="]
[/FONT][FONT="]OK so does that mean this assumption is correct?.
[/FONT][FONT="]
[/FONT][FONT="]If i make bioblend ie mixing SVO or WVO with WMO and other additives to mae fuel, 2500l of this will be Tax free after that it will be liable to £0.579 tax per liter.
[/FONT][FONT="]
[/FONT][FONT="]But if i were to make fuel using WMO alone with other additives to make fuel I would have to register my premise as an oil producing plant and pay tax at £0.579 per liter.
Sorry of quoting loads and not really asking a question i just want to understand the tax implications before i spend any money on the kit needed to produce fuel.
Cheers for your readings.
Ole[/FONT]