-----Original Message-----
From: Trevor <[email protected]>
To: [email protected]
Sent: Fri, 16 Oct 2009 2:52
Subject: Re: [canals-list] Red Diesel



> Also, when calculating the split, do folk here generally work it back to 
 the beginning of the financial year and then calculate what the split 
 for the present top-up ought to be?  It all sounds quite complicated to 
 me but, presumably, the annual split needs to be reasonably accurate if 
 the 'Man From The Ministry' ever found it necessary to do a check on 
 your records.
Don't forget that as part of your record keeping that if you use engine-cooling 
to heat your hot water then a proportion of the fuel you use is 
'non-propulsion' (even if the heat is produced while you are moving) and so 
liable to the lower rates of duty and VAT.

This was one of the points that was put to HMRC as an element of the 
discussions and HMRC's suggestion/agreement that a 60/40 split was generally 
reasonable. The suppliers have been told not to query any other split or to ask 
for evidence to support it. And basically the proportion of fuel used for 
non-commercial boating is so small compared with the total amount of 
hydrocarbon fuels it's probably not worth HMRC making any effort to seriously 
police it, even if they had enough people with the necessary expertise to 
analyse each person's usage and come to a conclusion.



DaveD 



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