Less VAT now

Yachtsmen pumping red diesel into their tanks from 1 November will now only pay VAT of 5 per cent on the whole tank.

HM Revenue & Customs have now simplified the rate which they had previously set at 17.5% for 60 per cent of the tank – used for propulsion – and 5 per cent for 40 per cent of the tank, which is used for ‘domestic’ concerns: heat, light and power for the nav station.

It should mean prices stay below £1 a litre based on a current pump price of 70ppl.