In a message dated 26/10/2008 18:40:55 GMT Standard Time, [EMAIL PROTECTED]
writes:
He was saying that from discussions he had had with
HMRC, it would be up to the boater to declare when filling up how many
litres were for propulsion and how many for other purposes.
It's not really surprising the dealers haven't heard anything yet as the
official guidance was only published last Thursday!
It was quite clear from the guidance put out by the IWA, BMIF and others
what the procedure is to be. At the time the boater purchases fuel he (or she)
declares the split (if any) the fuel is going to be used for - there should be
a certificate available for the boater to sign.
Following discussions with the relevant bodies, HMRC have agreed that a
60/40 split is reasonable under most circumstances. If a different split is
specified then that must be accepted by the supplier and the duty calculated
accordingly. The supplier will not be held responsible if the boater says it is
a
60/40 split and the actual usage is 90/10 or 10/90. However, if he suspects
the boater has mis-declared, all the supplier is required to do is to remind
the boater of his legal requirement.
It is up to the supplier to decide how to incorporate the declaration in
their accounting procedures and records, but the declaration must include the
statement "I declare that [ ]% of the fuel purchased will be used for
propelling a private pleasure craft". It is possible, I suppose, that in many
cases
you could create and hold a supply of slips of paper on your boat with the
declaration printed on it so all you have to do is to sign and date it; you
can
also pre-print your boat name and/or licence number, along with your name and
address. However, the supplier may also pre-print the declaration on
invoices or till receipts.
At the moment, the supplier will charge 40.66 pence per litre for fuel
declared for propulsion and will be required to send this direct to HMRC
The amount of fuel affected by the ruling is so small compared with the
amount used for other purposes that I don't think it registers high on the HMRC
Fuel Testing radar so I wouldn't expect much interest shown in boats, apart
from (possibly) one or two high-profile 'hits' early on just to show that
testing is done and to get publicity in the newspapers ("Freddy Starr drank my
diesel"?). ;-)
What it does mean, though, is that you must get AND KEEP your fuel receipts
on the boat to show that you have paid duty just in case you are stopped by
HMRC. If you declare 100% heating use and you are stopped while moving then
they might have grounds for further enquiries. But if you declare 90% heating
use, so far as they are concerned, your 10% propulsion allowance might be used
on that day for a single trip to a local boatyard for a pump-out, or
whatever. To confirm minimal mileage, it's possible HMRC may also ask to see
any
cruising logs you may keep.
Full details can also be found in Customs Brief 49/08 which was issued on 23
October and can be found (and downloaded) at
_http://www.hmrc.gov.uk/briefs/excise-duty/brief4908.htm_
(http://www.hmrc.gov.uk/briefs/excise-duty/brief4908.htm)
DaveD
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