Fuel user advice following changes to HMRC rules

UPDATE 15th March 2023

UK Government has made changes following the initial rollout in 2022. These changes ensure that some former users of rebated fuels (in arboriculture, heating and those generating electricity for non commercial premises) are again able to use these fuels. For more information on the update click here.

Description of UK government amendments to entitlement made in April 2022

NB for information purposes only and operators should confirm the legal requirements with their HMRC representatives where appropriate. Below are links to Government guidance.

Changes took place in April 2022 to Rebated Diesel (known as Red Diesel), which contains mandated chemical markers and dye, and has a lower excise duty taxation rate than unmarked White Diesel.

The range of applications in which Red Diesel can be used is restricted by HM Revenue and Customs (HMRC) and from the 1st of April 2022 the range of applications eligible was reduced. Further information on the updated list of allowable applications can be found here.

For the avoidance of doubt, users of Hydrogenated Vegetable Oil (HVO) are covered by these regulation changes in the same way they would be for users of conventional fuels.

Users whose fuel use applications do not fall under the revised HMRC requirements for Red Diesel should carefully consider transitional arrangements to ensure that they remain legally compliant. Some limited exemptions may be in place for certain applications, for example, critical safety and environmental appliances. Further guidance can be found at the link here:

New requirements for suppliers and users came into effect on the 1st of April 2022. Further information on these requirements can be found here.

Users are reminded that, in line with good housekeeping practice, the condition of storage tanks should continue to be carefully monitored to ensure the quality of the fuel is maintained before the product is used. Further guidance on the storage and handling of gas oil can be found at the links below.

BSI code of practice

BSI guide

UKIFDA help and advice

Enquiries to info@fuelsindustryuk.org

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