Taxi Driver Online

Biodiesel Move For Taxi Fleet Owner

2nd September 2008

A taxi firm owner fed up with the high cost of fuel is making her own biodiesel.

Elaine Buchan of Cruden Bay has set up plant and housing to reduce the impact of rising diesel costs.

The Peterhead taxi firm owner is paying locals 15p a litre for large quantities of used frying oil.

Her fleet of 12 cars are all run on the product.


Source; news.scotsman.com

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Brummie Cabbie.

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I hope she's paying HMR&C for their cut.

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Brummie Cabbie.

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she may use 2500 ltrs per year without informing HMRC, after that she would have to pay vat/duty but it wont be much, what would worry me is the longevity of her engines....

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What is the duty rate on cooking oil?

Cooking oil (whether used or unused) which has not been specifically produced or processed as a road fuel, will normally be classed as a fuel substitute. The duty rate will be the same as the sulphur-free diesel rate.

The important question is whether the finished fuel meets the legal definition. If a vegetable oil used as road fuel meets the fiscal definition HMRC will be happy to accept that it is entitled to the duty rate for biodiesel.


How do I pay biofuels duty?

If you are not approved for deferment after you have made entry you will be sent Form HO930 each month. This form must be completed by:

* filling in the appropriate line on the return, which is left blank for this purpose
* the figure 589 for biodiesel, or 595 for bioethanol after the figure 33 in the second column headed 'Tax Type'.

For other fuel substitutes you should fill in the appropriate line according to the engine type that your product will be used in.

The return form should also state:

* 'Biodiesel' or 'Bioethanol' in the third column, show the total volume, in litres, set aside or delivered as road fuel in that accounting period in column 4.
* Calculate the amount of duty due by multiplying the volume by the rate of excise duty in force during the accounting period.

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After this article, I'm sure someone at HMR&C will be making sure

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http://wingsoverscotland.com/ http://www.newsnetscotland.com/

I think you will find that there is a tax payable of 26p per litre (2005/2006 figure) for change of use from cooking oil to a fuel for vehicles.

And I believe that is for every litre.

Yes longevity of engines is a big issue!!

I used biodiesel only from March 2006 until November 2006; and then the diesel injector pump went BANG!!!

Using a Microsoft Excel automatic calculating spreadsheet, which I set-up myself, I keep an exact account of how much I was saving.

At the end of the experiment, I had saved approximately £935, but the new pump, injectors & fitting cost £1,053.

So the experiment did not work.

Better still, the reputable supplier that I was getting the biodiesel from, (he sold red diesel legally as well) closed down & disappeared shortly after my troubles.

Rumour has it that a big skip & haulage company that had been using the biodiesel from this supplier for their 29 vehicles, had seen 16 of these heavy vehicles, needing major engine repairs, & had not paid their account with the biodiesel supplier totalling just over £100K & were looking for the gaffer to rearrange his knee-caps.

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Brummie Cabbie.

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In the UK

In the UK, it is legal once duty on the fuel is paid.[11] In the UK, drivers using SVO/PPO have been prosecuted for failure to pay duty to Her Majesty's Revenue and Customs. The rate of taxation on SVO was originally set at a reduced rate of 27.1p per litre, but in late 2005, HMRC started to enforce the full diesel excise rate of 47.1p per litre.

Following a review in late 2006,[12] HM Revenue & Customs has announced changes regarding the administration and collection of excise duty of biofuels and other fuel substitutes (Veg Oil). The changes came into effect on June 30, 2007. There is no longer a requirement to register to pay duty on vegetable oil used as road fuel for those who "produce" or use less than 2,500 litres per year.[13] For those producing over this threshold the biodiesel rate now applies.

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if you make it to SELL then you have to charge duty+vat of course

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Of all the things ive lost, i miss my mind the most

Well its only 2500 litres per car so she can legally produce 30,000 litres without paying any more
That 2500 litres will work out at 40litres per car per week over a year but she will still have to mix it with normal diesel at about 50 50 so as not to do any damage to the engine making the 2500 go even further

1 company or person...those who "produce" or use less than 2,500 litres per year

thats per year, per company, not per car

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What will small producers have to do?

All registered producers are being sent a return as usual for the month of June. Those we think likely to be below the production threshold over the next 12 months are receiving a letter with this return. The letter asks them to declare whether they expect to produce more or less than 2,500 litres in the coming year. They should complete the declaration at the foot of the letter and send it back along with their completed return by the due date.

Those who declare that they expect to produce less will be deregistered and will not receive any further returns. We will refer to producers operating below the threshold as “exempt” producers. They must, however, contact us to enter their premises if they subsequently exceed 2,500 litres in a 12 month period, or if, at any time, they expect to exceed this amount within the next 12 months.

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only BUY bio-derv from a certified source, "B75" is one to consider, 75% bio 25% derv.

pump bio is 5% bio and shouldnt cause any problems.

but is it worth it?...

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Of all the things ive lost, i miss my mind the most

Wanna If you check with them its per vehicle

It's already causing problems with the white staining to the paintwork around the filler cap.

_________________
Kind regards,

Brummie Cabbie.

Type a message, post your news,
Disagree with other members' views;
But please, do have some decorum,
When debating on the TDO Forum.

You will go blind