Originally Posted by malthouse
"Red diesel VAT twist confirmed by HMRC...
The tale of red diesel has taken another dramatic twist with confirmation that all the fuel you take on from 1 November will be hit with a VAT rate of just 5%.
This is an abrupt shift in position from HM Revenue & Customs after briefing previously that 60% of your fuel would attract full VAT of 17.5%.
The reason for the about face is not known at present, but it is good news for boaters, and should mean prices stay below £1 a litre based on a current pump price of 70ppl."
Good, but what an about turn!?
Keep your powder dry for now.. I've been through this one with HMRC on other issues. We were stopped by them re selling red in our excavators at 5%, where they insisted it must be rated @ 17.5% despite the fact our supplier sells it to us at 5%
A lot of this is down to which bloody inspector you seem to have if you get an investigation
Trust me I argued my case very succinctly but was denied my point, yet others were allowed to persist with the practice, matter of fact , this thread has renewed my interest in going for it again.
Half the time the buggers dont know how to interpret their own legislation, as I have embarassed them before now on their lack of knowledge
For me, consumption wasnt the issue, re filling a tank meant no value was added to the hire of a machine ,.. but try telling that to an inspector on 'bonus' .. and when they threaten you with a backdate .. it doesnt fill you will much enthusiasm to argue the point