Fuel Excise on biodiesel

Gem7321

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

PAMDILL

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

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

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

Thanks so much that's just what I need!

Gem7321

Another question!

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

Thanks