Bob Wood wrote:
> 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?

Ooops, I forgot that one - so that's 29.8p increase on the 60/40
Therefore that will make my diesel (assuming the price hasn't gone up very 
recently) 105p/l, which is a couple of pence cheaper than white diesel at 
ASDA, and I won't end up with a car full of smelly jerries.
IMHO you only spill diesel in a car once... ;-)


Ron Jones
Process Safety & Development Specialist
Don't repeat history, unreported chemical lab/plant near misses at
http://www.crhf.org.uk Only two things are certain: The universe and
human stupidity; and I'm not certain about the universe. ~ Albert
Einstein 



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