HMRC Fuel Duty Drawback

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

2. 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!

3. 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

4. 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

5. 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)

6. 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

7. 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

8. The HO60 form • Take one • Take the notes too

9. The HO60 Form

10. The HO60 Form

12. 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?