Tax free bio diesel is coming !!!!!!!!!!!

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pos

pos

Well-Known Member
Posts
3,685
Location
West Yorkshire
Feck me,

Anyone planning on running their landy on veg oil / bio diesel, take a read of this page:

http://www.dieselveg.com/

As of Summer we can drive so many miles without having to declare it, send returns or pay tax on veg oil. This means instead of paying 95p a litre for DERV, we can buy veg oil for around 45-50p per litre.

This is music to my ears. As of summer it will no longer be expensive for me to run my landy

-Pos
 
However, veg oil prices will go up, and people who were scared off by the law now won't be.

Music to veg oil producers ears, not to home bio diesel makers.
 
There's no need for veg oil prices to increase, anf I see no reason why they should. Greater demand for the oil will mean that they have the money to keep it coming whilst making a healthy profit. It could also drive DERV prices down. But as you say, it may well work in the way that our current oil industry works. Farmers will turn into multi-millionaires / billionaires and we will be exactly where we were before. I hope this doesn't happen.
 
If you owned a veg oil company, and you realised that your oil was being used as fuel as much as it was cooking oil would you not add a bit on to your price? Economics 101!

Also, if suddenly all the oil goes into fuel we will have a shortage of veg oil, thats why we are not just switching to bio fuel, there simply is not enough veg oil to meet the demand of energy requirments.
 
Got to bear in mind that our total vegetable oil crop for the UK would supply a rather measly 2% of current diesel demand mate... If everyone who can use it decides to, veg oil will be seriously hard to find ;)

Great news though - 2,500 litres per year before you start paying duty or needing to register for duty.

That's me runnin' me landy on home made bio from WVO fer next ter nowt as soon as that comes in then, I'd better get meself one of them bunded oil tanks I spose! :D
 
I may be wrong but I just read some of that stuff and it's the rules relating to PRODUCERS of biodiesel etc that are being relaxed. Duty will still be payable if you use it as road vehicle fuel. Looks to me like that company who co-incidentally are selling kits to enable your vehicle to use the stuff, are leading people up the garden path. Can you really see the government letting you run your vehicle duty free???? No, nor me:(
 
Ah - but I read the Customs and Excise, Notice 179E.

The duty is due when the decision to:

Use it as a fuel...
Set it aside as a fuel...
Sell it as a fuel...

...to be used in a road vehicle is made. Provided you don't use or make more than 2,500 litres per year, you will be in the clear.

Bear in mind their definition of Bio-diesel does not include SVO or WVO at the moment!

Cheers,
 
Can't be arsed reading through all the small print but if this was true it'd be a major news story on the telly etc. At the moment veg oil is more expensive than diesel if you own up and pay the duty. What possible reason could the govt have to let thousands of their favourite motorists get away with paying no fuel duty. Sounds like a late april fool to me.:rolleyes:
 
Be cautious all, BioDiesel does incur fuel duty to pay unless it's included in the price sold to you. Veggie Oil also requires duty to be paid. But if you've any sense you'd build/buy a filter kit and help all the local chippies and fast food places recycle their vast quantity of waste veggie oil that they have (and they pay to dispose of it).

So, in summary, old veggie oil is free and works very well in landy's (mine does). You have to declare and pay duty on the veggie oil you use (but even at 47p/litre it's cheaper than diesel).

Other benefits includes significantly reducedp emissions (good for the MOT), a bit more umpfh, and a great chip shop smell that follows you.

Lastly, don't forget you will need to filter the old veggie oil to get rid of the chips etc!
 
pos said:
There's no need for veg oil prices to increase, anf I see no reason why they should. Greater demand for the oil will mean that they have the money to keep it coming whilst making a healthy profit. It could also drive DERV prices down. But as you say, it may well work in the way that our current oil industry works. Farmers will turn into multi-millionaires / billionaires and we will be exactly where we were before. I hope this doesn't happen.
Click to expand...

Not many rich farmers round here,I wish I was,I wouldn`t need to go contracting for other farmers in my spare time.a lot of farmers round here are giving up or going abroad,especially Canada.Milk is cheaper than water,2 years ago wheat was the same price as when i left school nearly 28 years ago,Is bread the same as 28 years ago?
Chris
 
Incidentally, if you wanted to try veggie oil in your landy and you have a 200 or 300 tdi, you can (in warm weather) run a 60/40 diesel/veggie oil mix with no probs. I run with at least 20% veggie in the summer months. Use filtered used oil if you can as it burns better. If you want a real power boost use peanut oil - it has loads more energy than diesel.
 
I'm not sure about the S3. Things to think about are: what type of fuel pump is it (Lucas pumps are not good to run straight veggie oil - i.e. td5); does it have a cat (pure unheated svo can damage the cat); and lastly the outdoor temp (I wouldnt run a blend unheated at a temp of less than 10 degree's as it sludges up at lower temps).

Assuming no Lucas pump, try it out on a warm day and see if you notice any difference. 60/40 should run on just about anything though. Tesco usually do a nice 15l drum - it's a good starter pack !!

Lastly, don't forget to declare the fact that you are using veggie oil as a fuel :D
 
adrian hollister said:
Lastly, don't forget to declare the fact that you are using veggie oil as a fuel :D
Click to expand...
Yes indeedy. There seems to be a growing idea that you can just chuck the stuff in your tank and get away duty free. There are going to be some unhappy bunnies about when the men from the ministry have taken their landies off them;)
 
http://customs.hmrc.gov.uk/channels...yType=document&columns=1&id=HMCE_PROD1_026553



Gents,
As i now understand it provided you do not cross the threshold of 2,500 litres per year you do not have to register with the inland revenue....

so if your vehicle does 25mpg this would equate to....13,748 miles before havind to register and pay tax...
the following web address provides more details and links to the revenue site for confirmation....

DieselVeg Home - Diesel to Vegetable Oil engine conversions

I hope this is useful......
 
I've said this before and can't really be arsed saying it again but..........all that stuff applies to PRODUCERS, not USERS, so small biodiesel producers will have their paperwork simplified, but the minute they put it in their car and drive it on the road they will still be liable for DUTY. None of this has anything to do with using biodiesel in a roadgoing vehicle and furthermore veg oil is not classed as biodiesel anyway.
 
Reading the info I think you are part right. If you chemically change the cooking oil in your shed into the ethyl ester of the fat/oil you used to pay lower duty than if you just slapped the oil straight in. Now it would seem that you can dispense with this duty altogether if you are a small producer. The name producer is a clue here, going to tesco and filling your trolly with rapeseed oil is not production so you don't qualify. If you take it home and brew it up in a 'reactor' this is production, and if its non-commercial, ie 2,500 litres per annum you are exempt from tax and registration.

It's similar to home brewed beer, isn't it?
Reading the blurb on this I think the intial post is missleading as the manufacturers of the kit seem to think it includes straight veg oil. Not so as you say Hughsey nowhere does it say you can do this without losing your ride to HMCE
 
from the earlier HM documents (links can be followed from the above link) a producer is either someone who produces biodiesel for their own use or for resale - but in regards to FUEL SUBSTITUTES a producer is someone who makes or produces a fuel substitute, or someone who merely SETS ASIDE a fuel substitute ofr vehicular use - ie, someone who goes to ASDA and buys 40 litres of veg oil with the intention of using it as a fuel substitute. The mere act of setting it aside transforms the veg oil to a road fuel substitute and hey presto - you are now a producer. Sounds ridiculous but its true.

Reading the previous papers and regulations up until this latest 2500 litre rule, someone buying vegetable oil with the intention of setting it aside for vehicular use as a fuel substitute had to register as a PRODUCER and pay the duty on the oil that they set aside. Just the simple setting aside counted as production.

This is still the same, only now you can use all those litres of veg oil without tax. Even though you are not actually producing it, you are in the eyes of the law a producer when you set it aside.

So as long as you register as a producer and use less than 2500 litres you pay no duty on your neat veg oil from TESCO, you don't have your car taken by the men from the ministry and you have cleaner motoring.

so the veg oil folk are right. Its all there in the government sites. Its just boring to read it all.
 
Muddy I couldn't be bothered to read it all. I'd love all this to be right I just can't see the govt letting tens of thousands of people run their vehicles duty and vat free.:confused: What we need is someone who knows about all this to go through the regs and make some sense of it, then spell it out in an understandable way for the rest of us:rolleyes:
 
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