End of the Red Era

If you use petrol in your boat you won't care about this, but us smug diesel-buyers have finally come to the end of our run of luck. Instead of paying 9.69p a litre to the tax man, we'll have to pay a whacking 40.66p from 1st November. Most boat owners are queueing at the pump to squeeze every last drop of red diesel into their tanks before the end of October. There are a couple of odd anomolies though - red will still be sold and used but you will have to declare (usually by signing a form at the pump) that you have paid duty on it if you are using it to fuel the propulsion of a pleasure craft. This is because the same pump is used to fill the next boat which could be a commercial craft and not liable for the new rate of tax. If you have a heater on board powered by diesel (and most boats use the same fuel tank as the engine fuel), you don't have to pay the new duty on the fuel used for heating. The powers that be have decided that heating fuel can be up to 40% of the total fuel used by a pleasure craft, but that claim will have to stand investigation should they decide to have a close look.

You may think this is all daft and the rules have so many holes in you could use it to trawl for sandeels. Who am I to say? All I can suggest is that you are very honest about the tiny amount of diesel used in the heater alongside the massive turbo-diesel engine you have in the back, and that the idea of sneaking a few cans of low tax diesel into your tank at dead of night where it can't be identified among the same red diesel which you have paid tax on, absolutely never occurred to you. If you want the full HMR&C pitch on it, have a read of Brief No 4098.