Diesel Prices

[Lady M]

Propulsion mark up changed when duty was cut recently.

[Liam]

6 hours ago, Alan de Enfield said:

Goodpoint - Probably not (it doesn't when we buy it, VAT is an add-on)

I think all suppliers have a minimum order quantity of 500 litres... and you can order upto 2300 litres for 5% VAT. Anything over 2300 litres gets slapped with 20% VAT.

[Alan de Enfield]

Just now, Liam said:

I think all suppliers have a minimum order quantity of 500 litres... and you can order upto 2300 litres for 5% VAT. Anything over 2300 litres gets slapped with 20% VAT.

 

But it doesn't really matter as you claim the VAT back (assuming that a seller of diesel has either chosen to be VAT registered, or have sufficient income to require registration) and pay the 5% - 20% VAT on sales to HMRC anyway.

 

Prices per litre (even for domestic Central heating oil) are always quoted excluding VAT.

[Liam]

4 minutes ago, Alan de Enfield said:

 

But it doesn't really matter as you claim the VAT back (assuming that a seller of diesel has either chosen to be VAT registered, or have sufficient income to require registration) and pay the 5% - 20% VAT on sales to HMRC anyway.

 

Yes but then on the other hand, really does matter if the seller isn't VAT registered.

[Alan de Enfield]

8 hours ago, Liam said:

 

Yes but then on the other hand, really does matter if the seller isn't VAT registered.

 

But a seller can easily register for VAT it is not mandatory to be operating above the threshold.

I registered one of our very small businesses (well below the threshold) as it actually 'made us money' by being able to recover all of the VAT.

It fractionally complicates the accounts, but I do the accounts myself and its easy enough to set up a spreadsheet in excel that discounts the VAT and shows separately the VAT and the income excluding VAT.

 

I'd always recommend any business of any size to discuss it with their accountant.

[Lady M]

As Liam says, it does make a difference if you are not registered for VAT.  Advice from our accountant was that VAT registration is not a good idea if most of your income is from customers are people rather than other VAT registered businesses.

[Alan de Enfield]

13 minutes ago, Lady C said:

As Liam says, it does make a difference if you are not registered for VAT.  Advice from our accountant was that VAT registration is not a good idea if most of your income is from customers are people rather than other VAT registered businesses.

 

Curcumstances vary, 100% of our sales are to non registered customers ('people') but it was still worthwhile for us.  When VAT is charged on everything from Site maintenance, mowing machines, tractors, even emptying the septic tank the recovery of that far outweighed the actual 'operating' output VAT of the company.

That is why I suggested it is necessary to speak with your accountant.

 

Have a look at the VAT Fkat rate scheme - this is where you charge your custmers the full (20%) VAT Rate but only pay HMRC a much reduced rate and you keep the difference.

 

VAT Flat Rate Scheme : Overview - GOV.UK (www.gov.uk)

 

Selling of fuel for example :

 

You sell your fuel to a not VAT registered person and charge 20% VAT, you  ONLY pay back to the HMRC 6.5% and you keep the extra 13.5% as extra profit.

 

The only downside to the scheme is that you can only recover VAT on Capital Equipment Expenditure that costs in excess of £2000

Edited March 30, 2022 by Alan de Enfield

[Lady M]

Surely you'd charge 5% on the domestic portion and 20% on the fuel declared for propulsion.  If you ordered less than 2,300 litres, you would pay VAT at 5%.  Fuel costing for boats is quite complex.

[Alway Swilby]

28 minutes ago, Lady C said:

Surely you'd charge 5% on the domestic portion and 20% on the fuel declared for propulsion.  If you ordered less than 2,300 litres, you would pay VAT at 5%.  Fuel costing for boats is quite complex.

Yes. I'd be miffed if someone charged me 20% vat on domestic fuel.

[Jonkx]

So what's the latest price for diesel if you're buying on the cut then?

[Mike Todd]

1 hour ago, Jonkx said:

So what's the latest price for diesel if you're buying on the cut then?

As always - quite a range and very much dependent on when a particular outlet last had a delivery.

[Grassman]

 I was quoted £1.71pl by Streethay Wharf on the Coventry Canal the other day when I phoned them. I wasn't desperate so I decided against calling in there.

[Iain_S]

2 hours ago, Grassman said:

 I was quoted £1.71pl by Streethay Wharf on the Coventry Canal the other day when I phoned them. I wasn't desperate so I decided against calling in there.

 

 

... and Streethay's price is usually quite reasonable

[Naughty Cal]

3 hours ago, Grassman said:

 I was quoted £1.71pl by Streethay Wharf on the Coventry Canal the other day when I phoned them. I wasn't desperate so I decided against calling in there.

We paid less than that for white diesel at the petrol station this morning!!

[Momac]

2 hours ago, Naughty Cal said:

We paid less than that for white diesel at the petrol station this morning!!

I am sure road stations turn over their fuel much faster than a marina . So road stations can revise their prices more frequently.

I expect some marinas who have bought at  the peak will be forced to sell at a loss unless the supply prices rise again.