Thursday, 09 September 2010

Golf club diesel tax shock

UNFORGIVING tax rules mean Prudhoe Golf Club has had to fork out £1,600 for using tractors fuelled by red diesel.

Prudhoe Golf Club

The vehicles are used at clubs throughout the country, but problems have arisen as the local course is divided by a stretch of main road.

During a unexpected visit, inspectors from HM Revenue and Customs (HMRC) pointed out that no-one using a public highway can fill up with the rebated fuel, unless they work in food production.

The club was therefore fined £1,000 and ordered to pay back £600 in tax. A further £1,000 fine was levied for failure to register two tractors properly.

“In my mind it’s just bureaucracy gone mad,” said Prudhoe Golf Club chairman John Perry.

“We’d been using red diesel for some time, so this was news to us.

“I asked jokingly: ‘If we dug a tunnel or put something over the road so we didn’t touch it, would we still have to pay?”

The club has now settled its fines, and made the switch to regular diesel, but Mr Perry added: “We’re now looking at not using tractors at all.”

A spokesman for HMRC said: “I can confirm that in these circumstances golf clubs are not permitted to use red diesel in their tractors on a public road – this is irrespective of the short distance that they may have to travel to get from one course to another.

“With the exception of some vehicles used in the agricultural industry, a registered vehicle which is being used on a public road must be licensed for road use, have a valid tax disc and similarly cannot legally use rebated fuel.

For details on the rules surrounding rebated fuel, visit www.hmrc. gov.uk

SHARE THIS ARTICLE