2008/10/26 Ron Jones <[EMAIL PROTECTED]>: > http://www.hmrc.gov.uk/budget2007/bn53.htm > Red duty is about 10p/l > Full duty is about 58p/l > > So the maximum possible increase is in the order of 48p+VAT = 55p - that's > the full duty rate (not a 60/40 split), a 60/40 split would be an increase > of 60% of 48p = 28.8, and adding VAT = 33p. I don't see how anyone could > make that £1.50 per litre.
The Customs Brief makes it clear that VAT is chargeable at the reduced rate of 5%, not the full 17.5% which you have used in your calculations. So, the maximum possible increase is in the order of 48p+VAT = 50.4p - that's the full duty rate (not a 60/40 split), a 60/40 split would be an increase of 60% of 48p = 28.8, and adding VAT = 30.24p. I don't see how anyone could make that £1.50 per litre. Only a small difference, I know - or have I missed something? -- Bob
