Law Regarding production of alcohol for heating and cooking

[nickdutch]

This is with reference to home made ethanol (distilled fermented alcohol) and bio diesel for heating and cooking fuels, no other purpose such as vehicular transport.


(from HMRC)
Dear XXXXXX,



Only if your production of biofuel were to reach 2,500 litres annually would you be required to notify HM Revenue & Customs, make entry of your premises, complete and send returns to HMRC and account for excise duty.



If you have produced or used less than 2,500 litres of:

§ any biofuel, or

§ any other fuel substitute or additive

within the last 12 months and/or expect to produce or use less than 2,500 litres in the next 12 months, you are an exempt producer and do not need to register with us and account for duty.



As an exempt producer you must record and keep the following information:

§ the date of each supply and/or own use

§ the amount in standard litres of each supply or own use

You should check the amounts produced at the end of each month. If you have produced 2,500 litres or more in the last 12 months, or expect to produce 2,500 litres or more in the next 12 months, you must contact us within 30 days to register your premises as described in paragraph 2.5 of our public notice no.179E, “Biofuels and other fuel substitutes”, which is available on our website http://www.hmrc.gov.uk. Click on “library” in the “quick links” box on the home page; then “publications”, “notices”, “excise duties” and finally, “oils/public notices”.





Yours sincerely,

R. W.


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SUBMITTED 2011-12-30T17:46
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Contact name: Nick
Business name:
Contact telephone number (including STD): 07XXXXXXXXX
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VAT Registration Number or business postcode: XXXXX
Position in the business: Proprietor
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Question details
Online service question: Request for conformation by post of the legality of distillation of alcohol for heating and cooking fuel. 30/12/2011 Dear Sir or Madam, I am proposing to distill ethanol alcohol that was fermented from fruit, vegetable and / or sugars for the purposes of generating a biomass heating / cooking fuel. This will be a non engine based fuel for use in spirit stoves (such as trangea types) for outdoor cooking and indoor cooking, probably in a spirit lamp type wicked burner, with the assistance of carbon monoxide detectors and smoke alarms for safety. The amount that I propose to make will be extremely low and substantially below 2,500 litres at 15 degrees Celcius. It will be probably as low as or substantially lower than 1 (one) liter a week or less to the most part. I have not started any operation of this type as of yet. I understand that I have to keep records of how much I have made and how much I have used and to keep those records for a period of six years for the benefit of the HMRC if they develop an interest in my operations. I also understand that so long as I keep records of the quantity that I make and use, that the action is perfectly legal for the quantities that i propose to make and use in accordance with the laws pertaining to the creation of biomass fuels. I will not be creating the ethanol based fuel for sale or consumption and it will be purely for my own use under the classification of a cooking / heating fuel. I understand that I do not need to register with the HMRC for this activity and I don't need a license for this activity either. I request confirmation that my views on this subject are correct and that I am in the correct possession of the facts on home alcohol distillation for healing / cooking fuel. I request this confirmation please.
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[TeeDee]

Good topic to discuss.

Few info books available here http://www.ush2.com/alcohol_uses_and_fuels.htm

[Eatmoreveg]

http://www.homedistiller.org/static_menu.htm you all probably seen this any way but .. i know you can have a still to purify water you must not mention alcohol if buying a still from abroad they want to sell to you but know everything is recordered as evidence. making your own is an option- the posted site has plans relating to the hight of the tower regarding the reflux etc,

[Bladerunner]

Hi Nick,

Good post. I assume from that reply that they are saying you can produce "AND SELL" up to 2,500 litres of bio diesel before you have to declare it?

If that is the case, and you are an honest guy, then you could barter for it to get round the limit.

If you are not so honest, but still lawful, you could sell it for cash and who is to know. You could even get round that by saying to the buyer, go and buy me "THIS" and I will give you 5 litres of diesel. "THIS" could be anything you want in a pre-SHTF situation.

You could even give them a choice.

20 fags = 6 litres
4 tins of beans = 2 litres
a dozen eggs = 1.5 litres
Bottle of whiskey = 20 litres
loaf of bread = 1 litre

All you do is ask for whatever you want at the time. To the best of my knowledge, bartering is not taxable.......YET!

Be lucky (and lawful) (Lawful is very different to Legal)

[maddriver]

I think you have to record how much you produce as well as how much you use/dispose of.

too tired to check my facts right now, but theoretically bartering should be taxable. Certainly an employer giving gifts over a certain value, or giving staff goods in kind, or a business owner taking stock out of his business would be taxable, so I see no reason why the same rules shouldn't apply to bartering.