VFR11020 - Procedure tables: claims by UK traders for the repayment of duty on road fuel used in fulfilment of US contracts for the conveyance of personnel and school children

VFR05100

Action by CITEX Visiting Officer

Action by Mineral Oils Relief Centre

VFR05100 {#VFR05100}(‘Refund of duty on road fuel used by contractors for the conveyance of US forces personnel and school children’ heading) refers.

{#CITEX}Action by CITEX Visiting Officer

On receipt of the first application from the contractor, arrange to visit the trader to record the system under system based control procedures to ensure that satisfactory records are kept for verification purposes.

Confirm details of the contract, in particular:

  • the dates and routes covered;
  • the seating capacity of all vehicles used;
  • the terms of the contract and the signatory. If necessary the signatory may be checked with HOCT;
  • that if cars/taxis are used a clause is included specifying that the 75 miles per hour standard mpg figure is to be used for conversion from journey miles to gallons used; and
  • agree with the trader the maximum unloaded mileage element for each route which is to be accepted on claims.

If satisfactory, issue a letter as set out in VFR12020 to the business. Advise the Mineral Oils Relief Centre (MORC) in writing that the trader has been approved:

Mineral Oils Relief Centre, BP4002, Benton Park View, Newcastle Upon Tyne, NE98 1ZZ

The trader should submit claims to MORC on a quarterly basis and should follow the guidance in para. 3.6 Public Notice 431.

https://www.gov.uk/government/publications/notice-431-visiting-forces/notice-431-visiting-forces

{#MORC}Action by the Mineral Oils Relief Centre

Verify claims ensuring all claims are submitted quarterly and:

    • are on company headed paper
    • state the contract number/s
    • show full calculations for refund
    • be signed by a company representative
    • include worksheets/schedules

Claims are calculated on the basis that:

  • duty is paid on all mileage on each route;
  • unloaded mileage covers journeys between the garage or place of overnight parking and the first pick up point; and the return journey from the drop off point to the garage;
  • the total mileage covered on each journey is made wholly in pursuance of the contract, provided it is certified by the US forces as admissible mileage;
  • the following formula is to be used in calculations:

admissible mileage multiplied by current rate of duty per litre fuel divided by consumption factor; and

  • the following miles per litre factors are to be used for claims:

for buses and coaches:

up to 28 seats - 4.1 miles per litre

29 to 53 seats - 2.7 miles per litre

over 53 seats -1.95 miles per litre

for cars/taxis:

the miles per litre factor calculated from the miles per imperial gallon figure at 75 miles per hour published in Department of Transport booklets.

If satisfactory, the claim is passed to the National Payment Centre in Cumbernauld for payment.

If vehicles from more than one group are used an average of the miles per litre factors should be used.