Fuel Excise on biodiesel

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Gem7321
Gem7321 Registered Posts: 1,438 Beyond epic contributor 🧙‍♂️
Hi

I hope someone can help me.

I have been approached by my first potential client, he is a sole-trader producing biofuel for road use and would like me to do his VAT return and monthly fuel-excise return. I haven't accepted the engagement yet because I have no experience in fuel-excise and wanted to do some research first.

Firstly, what is the rate per litre?! All I've found is this paragraph in Notice 179E:

3.1 What rates of duty apply to biofuels?

At the time of publishing, biodiesel and bioethanol have an excise duty rate of 20 pence per litre less than the diesel/unleaded petrol rates.

Is this literally 20p less than what you pay for diesel at the nearest garage? I hope not!

I'd be grateful to hear of any of your experiences with this kind of business and advice would be much appreciated!

Thanks very much

Gem

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  • PAMDILL
    PAMDILL Registered Posts: 721 Epic contributor 🐘
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    Price at forecourt is not all excise duty.

    I have a pdf file with the current excise duty notice from HMRC but it is 227kb so can't attach it. pm me and I will send you it.
  • Gem7321
    Gem7321 Registered Posts: 1,438 Beyond epic contributor 🧙‍♂️
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    Thanks Pam but I still don't know what the rate is. I have seen the form and it looks relatively simple, and should be simple to do as long as the client keeps good stock records - if only I could find the rate!
  • PAMDILL
    PAMDILL Registered Posts: 721 Epic contributor 🐘
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    I have emailed you he budget notice which show the current rate from 1st April 09 and then the one it changesto in September 09
  • Gem7321
    Gem7321 Registered Posts: 1,438 Beyond epic contributor 🧙‍♂️
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    Thanks so much that's just what I need!
  • Gem7321
    Gem7321 Registered Posts: 1,438 Beyond epic contributor 🧙‍♂️
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    Another question!

    Should the duty be entered as an expense in the P&L or should it be deducted from the sale amount?

    Thanks
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