Dear Mr Eastwood
Thank you for your emailed enquiry dated 24th July 2009 requesting further information on the HMRC requirements when processing waste oil with a view to using it as road fuel.
In the light of the information provided in your email you will be regarded by HMRC as a recoverer of waste oil and you will be required to ‘make entry’ of your premises by formally notifying us on Form EX103 (or EX103A if you are an incorporated company) which is available on our website. The completed form should be submitted to the Mineral Oils Relief Centre, HMRC, Building 4, BP4002, Benton Park View, Longbenton, Newcastle upon Tyne, NE98 1ZZ, and marked for the attention of Barry Nicholls.
Having entered your premises you will be required to pay excise duty on the recovered oil at the full diesel rate which is currently £0.5419 per litre. Form W50 will need to be submitted, with immediate payment, to the National Warrant Processing Unit before any oil is used for road fuel. Unfortunately that Unit is currently located in temporary accommodation so you will be advised of the correct address and payment procedure on completion of the EX103 submission.
The only HMRC publication that covers the scenario you propose is Revenue & Customs Brief 45/08. Certain elements of that document have been overtaken by subsequent changes – very noticeably the addresses of the sections involved - but most of the general principles outlined in the Brief still apply.
I hope this is of assistance.
I must emphasise that the advice given is based on the information you supplied. It only relates to HMRC procedures and pays no regard to any requirements imposed by other organisations. Moreover if the nature of the transaction changes in technical detail, or the relevant details provided were incomplete or incorrect, we will not be bound by this advice.
Looks like the waste oil powered 200 will be up and running shortly... the mpg of a diesel, at fuel the price of lpg... result.