HMRC Fuel Duty Drawback Or why fly in the UK when you can fly foreign cheaper

Home Previous Next Help 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!

Home Previous Next Help 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

Home Previous Next Help 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

Home Previous Next Help What is Foreign Channel Islands Ireland (not Northern Ireland) Europe All within 2 hours or less of 120 kts 100 Litres = £37.70! In N808VT that’s £107 per foreign flight (283.5 L * £0.377)

Home Previous Next Help 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

Home Previous Next Help 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

Home Previous Next Help The HO60 form Take one Take the notes too

Home Previous Next Help The HO60 Form Form element/SectionNotes Date of landing in the UK from last foreign flight Assumes any fuel from that date is UK Fuel Duty Paid. Keep invoices Tank capacityInclude full capacity (including any unusable) and in Litres, NOT USG! Normal consumption per flying hour This is to enable a calculation later of what fuel may have been used on a leg inside the UK. A lower figure rather than a higher one is to be preferred as this is used to subtract from the total drawback amount. There is no calculation of what fuel may have actually been used on the journey itself. Customs are happy for the whole tank load to be regarded as the “oil shipped as stores on a foreign going aircraft”. The drawback claim is based on that. There is also no calculation of what if any of the original fuel was still in the tank after return to the UK. Airport of Departure/DestinationUse names, NOT ICAO codes Date of flightDate of flight you actually left the UK Aircraft descriptionICAO aircraft type as per flight plan Category of hydrocarbon oil used as fuel Aviation Spirit or enter ’Mogas’ in Other if you use it

Home Previous Next Help The HO60 Form Form element/SectionNotes Details of fuel loaded before departure for foreign destination Straight forward; use names, not ICAO codes and make sure you log invoice numbers for all fuel loaded Fuel in tank before departure from UKInclude any unusable and in Litres, NOT USG! Total quantity of fuel loadedTotal of all fuel loaded (with invoices!) Quantity on which drawback is claimed This is the actual drawback. See notes above. It must be the amount you have evidence for less any amount of inland flights before your departure to the foreign destination Rate of duty on drawback (£ per litre) For this, you need to check HRMC fuel duty rates as set in the budget. Amount of drawback claim (£) Do the math! Litres claimed * rate of duty! Declaration Print the form and complete this part in handwriting. Even if you have an electronic copy! HO60 ScheduleIf you have more than 1 claim, use the schedule to list each flight claimed.

Home Previous Next Help

Home Previous Next Help 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?