Government regulations are about to come into force which will open up the market for biofuel production in the UK. At present the law requires anyone producing any quantity of a biofuel (mostly biodiesel in the UK) to pay duty of 28.35p* on every litre they produce as well as submit returns to HM Revenue & Customs and hold a permit. As from on the 30th June 2007 the following changes applying to biofuel producers are to be introduced:
- A production threshold of 2,500 litres per annum below which producers will not need to submit returns or pay duty, and- A reduction in the frequency of returns for all but the largest producers (defined as those producing over 450,000 litres per annum) from monthly to quarterly.
At the present time there are approximately 1,400 producers of Biofuels in the UK, a large proportion of whom produce for their own personal use.
This landmark change in regulation means that everyone will have the opportunity to produce enough biofuel for their own personal consumption, duty free.
The effectiveness of the 2,500 litre level will be monitored and the Government will consider the scope for raising the threshold a year after its introduction.
The full implications for this legislative change will be discussed and debated in workshops at the Biodiesel-Expo 2007(www.biodiesel-expo.co.uk) which will take place at the Newark Showground in Nottinghamshire on 17th and 18th October. Attendees at the Expo will also be able to meet with over 100 exhibitors a number of whom have solutions for taking advantage of this new legislation.
Geoff Riley, HM Revenue & Customs, who will be at the Expo to take part in the workshops said "This legislative change will reduce the administrative burden on HM Revenue & Customs as well as small producers and I look forward to explaining it more to attendees at the Biodiesel Expo."
Richard Price, MD Filtertechnik, a supplier to the biodiesel market and sponsor of the Biodiesel-Expo said "I anticipate this will lead to an explosion of biofuels producers who will create a new "homebrew" market. It is a very exciting time to be in the biofuels business."
The biodiesel market is one of the fastest growing markets in Europe today. With over 100 exhibitors from both the UK and overseas the Biodiesel-Expo has become the national showcase for all aspects of biodiesel production and usage.
Biodiesel-Expo is organised by Biofuels Media Ltd a company established to bring together the biofuel markets.
Roger Flynn of Biofuels media said" This is great news for the industry and consumer alike and shows that the Government is committed to developing a grass roots base for the future of biofuels in the UK."
Entry to Biodiesel-Expo 2007 is free if visitors pre-register by October 5th. After this date entry will be charged at £50.
For more information on exhibiting or visiting the event as well as obtaining tickets visit the organiser's website at www.biodiesel-expo.co.uk
* For a current non producer the duty they pay at retail pumps is 48.35p making the saving to them even greater.
