"Dodging" fuel tax

[mesmerred]

I understand that people can run their diesel cars on vegetable oil (which makes them "greener" and of course cheaper to run), but if they do they can be in trouble for avoiding fuel tax. They must have already paid VAT on the oil so if they offer to pay fuel tax would the VAT be taken off what they owe? What is the rate of fuel tax anyway? Also, how can they prove they have paid the tax on all the oil they have put in? It seems an impossible situation.

[Ethel]

The vat on cooking oil is a different and seperate issue to duty on fuel tax.

If you use cooking oil in your diesel vehicle it is your responsibility to keep records and pay the appropriate duty.

I have personally known 3 people be fined �500 for not doing so. One had his car impounded as well.

Here is an example:

http://news.bbc.co.uk/1/hi/wales/2312521.stm

[mesmerred]

Thanks for you answer and the link Ethel. I suppose the best thing would be to consult Customs and Excise before doing it. Given the A.A advice though it might not be worth it in the long run. Thanks again.

[Ethel]

Would love see you buy enough bottles of cooking oil to fill your tank.

:)

[dzug]

AFAIK there is no VAT on cooking oil (certainly for domestic use) anyway.

So you'd need to pay the full duty.

[Carby]

dzug there is VAT on everything you buy! Except under certain circumstances.

[jennyp]

We don't pay vat on food - zero rated.

[mesmerred]

Hi Ethel, people don't fill their whole tank, only a percentage. However there is a garage near me that sells fuel based on vegetable oil so that seem the best way to avoid any problem with tax. Dzug, Carby and Jennyp - I think you are all saying the same thing, in a different way. Thanks for you help everyone.