HMRC Fuel Duty Drawback

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HMRC Fuel Duty Drawback

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

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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!

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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

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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

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What is Foreign

• Channel Islands
• Ireland (not Northern Ireland)
• Europe
• All within 2 hours or less of EGLG _at_ 120 kts
• 100 Litres 37.70!
• In N808VT thats 107 per foreign flight (283.5 L
  0.377)

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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

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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 dont get to
  fix the error

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The HO60 form

• Take one
• Take the notes too

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The HO60 Form
Form element/Section Notes
Date of landing in the UK from last foreign flight Assumes any fuel from that date is UK Fuel Duty Paid. Keep invoices
Tank capacity Include 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/Destination Use names, NOT ICAO codes
Date of flight Date of flight you actually left the UK
Aircraft description ICAO aircraft type as per flight plan
Category of hydrocarbon oil used as fuel Aviation Spirit or enter Mogas in Other if you use it
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The HO60 Form
Form element/Section Notes
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 UK Include any unusable and in Litres, NOT USG!
Total quantity of fuel loaded Total 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 Schedule If you have more than 1 claim, use the schedule to list each flight claimed.
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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 youve 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?