Diesel and the 60/40 split

ORPH's detailed explanation of what is required by law to supply 'go-go juice' to us boaters gives an insight into the cash flow issues surrounding the stuff, writes Kevin McNiff.

VAT (whoever coined that phrase should be keel hauled—it is sales tax!) will always cause businesses to suffer because HM Revenue & Customs take so long to correct the over/underpayment of it.

European Union

In 2001, red diesel was around 25p/ltr (or less at Wheaton Aston) but along with the ever increasing cost, the European Union stuck its snouts in and made it a big issue for us boaters.

But having reluctantly accepted that things will not change any time soon, boaters in general are hacked off with those yards that have stuck to the 'recommendation' that 60/40 is the norm. But whatever the declaration made by the purchaser, the paperwork will still be there to comply with, so operators are minded to give up selling the stuff, and that is their prerogative.

In breach

Many marinas and boatyards have stuck to the 60/40 rule and in some cases the pump price is higher than that at a roadside filling station! They are also in breach of the rule agreed with HMRC, RYA and RBOA. Others, including coal/fuel boats are happy to supply on a self declaration basis. I know that some yards will sell at domestic rate if the fuel is collected in cans.

I'm sure that all marinas and yards use some form of spreadsheet in their business, If so, then a new workbook could be automated so that 'static data' such as the current rates of duty and VAT are input for the effective period then the daily amounts of diesel supplied, together with the declaration percentages are input.

Individual boat records

Macros (lines of script that perform set calculations) within the spreadsheet then do the maths and another linked spreadsheet can extract the data to give the required information to the accountant and HMRC. Additional information could also be added so that individual boat records can be extracted. (Anyone visiting Turner's at Wheaton Aston will know this, as my last call in June proved!)

The RBOA have a spreadsheet for boaters to keep their own records, and while this would not satisfy the level of data required by law and good financial governance, surely there is a source of skill to deliver such a package. (IT professional, a student on vacation who works part time for the yard even?) Maybe Turner's will sell you their spreadsheet? Blank of course.

I sympathise with boat businesses suffering in the current financial climate but there are ways to mitigate the burden of tax regulation.