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In another post on this forum about using Biodiesel I found a link interesting.
Biodiesel for use in household heating can have the Road Fuel Excise duty element rebated.
We run autogas instead of bottle gas for our heating and cooking. We pay Road Fuel Excise Duty on this LPG even if we can get it supplied at 5%VAT instead of 20%VAT.
As a result I have fired of a letter to:
HM Revenue & Customs
Mineral Oil Reliefs Centre
Dobson House
Regent Centre
Newcastle
NE3 3PF
Dear Sirs
I live full time in this motorhome, so it is my house. The address above is our contact address.
I use “Autogas” LPG as my gas supply for domestic heating and cooking in my Motorhome. I have an 85 litre bulk tank onboard my motorhome instead of using bottled gas. I use about 1000 litres of Autogas per year for my domestic gas supply. The vehicle is powered by diesel fuel.
I note on your website that there is provision to claim a rebate by householders for the duty on biodiesel as a fuel for domestic heating. I am unaware if there is such a scheme for using LPG when supplied through an “Autogas” outlet. Is it possible for me to reclaim duty paid in the same manner for “Autogas” used for domestic purposes?
I can get my gas from Calor Gas Ltd or other LPG suppliers at the domestic gas rate of VAT (5%), but they tell me that they cannot supply me with gas without road fuel duty, as HMRC charge the duty when it is loaded into the supplying tank and not at point of sale.
It is not viable for a gas outlet to maintain two “Autogas” tanks for the small number of users who use the gas for domestic use, instead of propulsion, so we are forced to use the same tank as those using the gas for propulsion purposes. This would seem to be the same situation with Biodiesel but provision has been made to rebate the duty on that fuel to the householder.
If I purchase my gas from a garage, I am charged full road duty plus VAT at 20% as these suppliers refuse to supply at 5% vat.
I contacted HMRC regarding claiming the VAT difference but was told that as I am not eligible to register for VAT, I am unable to claim back the VAT difference.
I quote from your website
Can I use biodiesel for heating?
The use of biodiesel as a heating fuel is not a chargeable use and therefore no duty is due. Although there is provision in law for this fuel to be supplied without a duty charge being applied, the reclaim scheme described above can also be used to reclaim any duty that is charged by suppliers.
This system has been put in place because it is recognised that it can be difficult for householders to obtain biodiesel for non-road use that has not already been charged with Excise Duty. This will be an administrative decision for the supplier, who may not supply sufficient quantities of domestic heating biodiesel to differentiate between road and non-road customers.
The paragraph highlighted and underlined above, would seem to apply equaly to our LPG supply situation. If there is no such scheme for LPG supply under the same circumstances then this surely is discriminatory
Yours sincerely
John J Thompson
Anyone else fancy sending a letter to HMRC on this matter.
It is the Road Fuel Excise Duty of 16.5p per litre not the VAT that I am asking them about. For my use of over 1000 litres per year I could save about £175 per year. I am already geting my LPG at 5% VAT (Domestic rate) instead of 20% VAT,
John
Biodiesel for use in household heating can have the Road Fuel Excise duty element rebated.
We run autogas instead of bottle gas for our heating and cooking. We pay Road Fuel Excise Duty on this LPG even if we can get it supplied at 5%VAT instead of 20%VAT.
As a result I have fired of a letter to:
HM Revenue & Customs
Mineral Oil Reliefs Centre
Dobson House
Regent Centre
Newcastle
NE3 3PF
Dear Sirs
I live full time in this motorhome, so it is my house. The address above is our contact address.
I use “Autogas” LPG as my gas supply for domestic heating and cooking in my Motorhome. I have an 85 litre bulk tank onboard my motorhome instead of using bottled gas. I use about 1000 litres of Autogas per year for my domestic gas supply. The vehicle is powered by diesel fuel.
I note on your website that there is provision to claim a rebate by householders for the duty on biodiesel as a fuel for domestic heating. I am unaware if there is such a scheme for using LPG when supplied through an “Autogas” outlet. Is it possible for me to reclaim duty paid in the same manner for “Autogas” used for domestic purposes?
I can get my gas from Calor Gas Ltd or other LPG suppliers at the domestic gas rate of VAT (5%), but they tell me that they cannot supply me with gas without road fuel duty, as HMRC charge the duty when it is loaded into the supplying tank and not at point of sale.
It is not viable for a gas outlet to maintain two “Autogas” tanks for the small number of users who use the gas for domestic use, instead of propulsion, so we are forced to use the same tank as those using the gas for propulsion purposes. This would seem to be the same situation with Biodiesel but provision has been made to rebate the duty on that fuel to the householder.
If I purchase my gas from a garage, I am charged full road duty plus VAT at 20% as these suppliers refuse to supply at 5% vat.
I contacted HMRC regarding claiming the VAT difference but was told that as I am not eligible to register for VAT, I am unable to claim back the VAT difference.
I quote from your website
Can I use biodiesel for heating?
The use of biodiesel as a heating fuel is not a chargeable use and therefore no duty is due. Although there is provision in law for this fuel to be supplied without a duty charge being applied, the reclaim scheme described above can also be used to reclaim any duty that is charged by suppliers.
This system has been put in place because it is recognised that it can be difficult for householders to obtain biodiesel for non-road use that has not already been charged with Excise Duty. This will be an administrative decision for the supplier, who may not supply sufficient quantities of domestic heating biodiesel to differentiate between road and non-road customers.
The paragraph highlighted and underlined above, would seem to apply equaly to our LPG supply situation. If there is no such scheme for LPG supply under the same circumstances then this surely is discriminatory
Yours sincerely
John J Thompson
Anyone else fancy sending a letter to HMRC on this matter.
It is the Road Fuel Excise Duty of 16.5p per litre not the VAT that I am asking them about. For my use of over 1000 litres per year I could save about £175 per year. I am already geting my LPG at 5% VAT (Domestic rate) instead of 20% VAT,
John
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