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HMRC Fuel Duty Drawback. Or why fly in the UK when you can fly foreign cheaper. What is HMRC Fuel Duty Drawback?. Claim back Fuel Duty on all exported fuel when loaded into a ship, or aircraft, for use as stores on a foreign voyage or flight, or

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Hmrc fuel duty drawback

HMRC Fuel Duty Drawback

Or why fly in the UK when you can fly foreign cheaper


What is hmrc fuel duty drawback
What is HMRC Fuel Duty Drawback?

  • Claim back Fuel Duty on all exported fuel when

    • loaded into a ship, or aircraft, for use as stores on a foreign voyage or flight, or

    • placed in a tax warehouse for use as ships’ or aircraft stores

    • Provided Excise Duty has been paid

      • i.e. fuel loaded in the UK

  • Currently £0.377 per Litre

    • 100 Litres = £37.70!


How does it work
How does it work?

  • Fill your tanks

  • Keep evidence (invoices)

  • Export the fuel

  • Complete form H060 from HMRC

  • Attach invoices

  • Wait for the cheque to arrive about 6 weeks later


Basic rules to claiming
Basic Rules to claiming

  • You can only claim what you actually export

    • Even if it is more than the actual flight

      • Claim what is in the tanks on the way out of the UK

  • Only claim lower of tank capacity or evidential proof

    • Tanks hold 72 USG, invoices show 15 USG – claim 15

    • Flight takes 15 USG, tanks hold 72, invoices show 72 - claim 72

    • Must be UK duty paid

  • Only claim fuel loaded since last arrival in the UK

    • Invoices before last UK arrival date become invalid for claiming

    • Keep your fuel invoices!

  • Like all tax processing, abuse could cost you


What is foreign
What is Foreign

  • Channel Islands

  • Ireland (not Northern Ireland)

  • Europe

  • All within 2 hours or less of EGLG @ 120 kts

    • 100 Litres = £37.70!

      • In N808VT that’s £107 per foreign flight (283.5 L * £0.377)


The small print
The small print

  • Watch your Weight & Balance

    • Consider take-off runs & fuel burn etc if fully loaded

  • Fuel must be UK duty paid

    • Cannot claim for fuel loaded in foreign port

  • Cannot claim duty twice on the same fuel

    • Loaded aircraft, exported it, some left upon return

    • Cannot claim this remainder next time round

    • Each foreign trip invalidates unused invoices to that date/time of last UK arrival

    • Claimed fuel must be UK duty paid

  • Can only claim for fuel actually exported

    • Intermediate UK legs cannot count

    • E.g. fuel used on a leg EGLG - Lydd


Can a claim be rejected
Can a claim be rejected?

  • If the claim has not been converted to litres

  • The form does not bear an original signature

  • The form has been received outside the time limits (3 years)

  • The claim is incomplete

    • Airport codes used instead of airport names – critical!

    • Wrong fuel duty rate

    • Missing check boxes

  • Remember that you cannot claim drawback of excise duty:

    • in excess of what was originally paid

    • before the excise duty has been paid

    • if you are claiming relief from excise duty under any other scheme

    • for any part of a journey within the UK prior to departure to a destination outside of the UK, or

    • in the case of aircraft, on any flight where the aircraft does not land abroad

  • A rejected claim is not paid – you don’t get to fix the error


The ho60 form
The HO60 form

  • Take one

  • Take the notes too




Tips

  • Keep Invoices (pool them if you share)

  • Keep copies of last claim so you can complete date of last arrival data

  • Keep fuel loading consistent

    • Fill to tabs so you always know what you’ve paid duty on

    • Fill immediately after arrival of a foreign trip to get invoice

  • Double check form before submitting

    • Mistakes cannot be rectified

  • Calculate your capacities in Litres & keep note

    • Tank capacity

    • Fuel burn per hour

  • Why fly UK anymore?


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