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PRO

What are you paying for red diesel?

I bought 40.10 Litres of red diesel this afternoon and I was pleasantly surprised that the cost has dropped since the heady heights of last summer. I paid 0.564 a litre which included TAX of 19.60% - This cost equates to about .60 pence per litre. How much are you paying for fuel and how do you charge it back to your business as a cost of sale or overhead? Please see the correction to the figures

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  • Currently

    £0.54 per litre which is put against running costs of plant, cutters, etc

    Kerry
  • PRO
    I should point out that I paid .564 cents (Euros)
  • £0.60p inc 5% ? tax is it? tax going up soon as narrow-boats are being classed as leisure.........
  • think you europeans are getting it wrong way round now ( as pound is low ie not many for your euro) if we get 1.2 euro for a pound now.........say 1 euro is 95p phil? so u pay about 50p/litre am i totally wrong as i used to work it out : 1.44 or 1.39 euro's to the £1 (2yrs ago)?

    u think its expensive coming here now compared to eary last summer, whereas we used to think it was ok going to euroland (holland) 2yrs ago
  • PRO
    Well done Robin for spotting my mistake - sorry to confuse everyone :)

    I have calculated it back into pounds wrongly.

    What it should read is €0.564 pl = £0.522pl

    The price here includes 19.60% TAX.

    It is also worth noting that when buying the red diesel (from a pump at an ordinary garage) that I was issued with a receipt/certificate with a warning that the diesel should not be used for road use. The record has to be kept for two years.

    Please read in conjunction with Red/White Diesel
  • not forgetting you cannot use red for amenity use,grass cutting etc
  • PRO
    When did this change Steve?
  • The resulting document was the Memorandum of Agreement signed in January 2008 by HMRC, the Driver and Vehicle Licensing Agency, the National Farmers' Union, the National Association of Agricultural Contractors and the Confederation of Forest Industries.

    The Memorandum states that landscaping and the maintenance of recreational facilities are not agriculture or horticulture. As a result, a tractor cannot use red diesel on the road when undertaking grass cutting/maintenance work at golf courses, playing fields, parks, cemeteries and around industrial, commercial and civic buildings that do not border public roads. A tractor can, however, undertake grass management work when the grass is being cultivated for harvesting as fodder.
    Mowing machines

    The 'mowing machine' excepted vehicle category does not place limitations on what the mower can do. Consequently, any vehicle which is a purpose-built mower used exclusively for mowing qualifies to use red diesel regardless of the type of grass cutting it undertakes or its use of the public road. A tractor with mowing equipment attached is not a purpose-built mower. It does not, therefore, qualify in the mowing machine category and only qualifies in the tractors category when undertaking qualifying work.

    Any type of utility vehicle with removable mowing machinery is not a purpose-built mower. However, a vehicle consisting, for example, of a Land Rover chassis with permanently fixed grass cutters, designed and constructed for grass cutting and used solely for that purpose, would qualify in the mower category.
    thanks to HMRC for this information.
  • PRO
    Here is the link to the MM Customs page - Use of rebated fuel in grass cutting vehicles
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