Duty rates and Vat

updated 01/04/09

Future rate decisions are a matter for the Budget.

Current fuel duty rates are set out below

updated 1st April 2009 includes new price increase

Biofuels	Duty rate per litre (£)
Biodiesel	0.3419
Bioethanol	0.3419
Rebated biodiesel and bioblend	Effective duty rate per litre (£)
Biodiesel for non-road use	0.1042
Biodiesel blended with gas oil	0.1042
Biodiesel blended with kerosene	Nil

Vat Rates:

Biodiesel (road legal) is at 15%

Biodiesel Heating Oil under 3'300 litres is at 5%

Biodiesel Heating Oil over 3'300 litres is at 15%

Clearer Examples of Heating Oil:

To recieve the 5% vat charge, only one drop of 3'300 can be delivered to one property on one day.

If you require more than 3'300 litres delivered in one go to one property then the vat is 15%.

This is govermental rules, not ours.

Just to make this simple:

I sell biodiesel as heating oil, either on its own or mixed with kerosene.

If you purchase this from me as heating oil, I CANNOT put a duty charge on it. As it is NIL duty.

If you intend to use it as road fuel, then it is upto you to inform the HM revenues and pay the additional duty.

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the above information was found on the HMRC website,

please see the link below.