From April 1st 2022, there are new rules surrounding the use of rebated red diesel and rebated biofuels.
The new legislation is being introduced to help the UK achieve its 2050 net zero carbon target by decreasing commercial reliance on fossil fuels. A large number of sectors will no longer be able to burn fuels at a rebated rate and will instead have to use alternative fuels.
We’ve summarised the latest information from HMRC to help you understand what to do if you have leftover rebated fuel and how to manage the changes.
Beesley Fuels is on hand to provide full guidance and advice along the way to help simplify your fuel transition as a result of the tax changes.
You can sell or dispose of the fuel without needing to be approved by HMRC as an RDCO, but you must hold on to all records to demonstrate how this was done. It’s essential that you dispose of rebated fuel safely and correctly by using an approved waste oil recycling or disposal company like Crown Oil.
Standby electricity generation refers to those which are used to ensure continuity of power for a critical or essential service, such as:
Please note: this doesn’t include generators that are used every day as the main source of electricity.
After 1st April, you can only use rebated fuel in a machine that is used for generating power in non-commercial premises. You can use up any rebated fuel that you acquired before the 11 June 2021 for standby electricity generation in premises used in commercial premises or for critical equipment used in commercial premises
If you expect that you’ll have rebated fuel which was acquired for either of these uses on or after the 11th of June 2021, contact HMRC at firstname.lastname@example.org. They will determine if you can be issued a licence in which you can pay the difference in duty between the rebated and non-rebated rates and use up the rebated fuel on hand on the 1 April for a non-accepted use.
HMRC does not expect you to flush out rebated fuel from storage or running tanks that are used for:
Call 0330 123 1144 to speak to a fuel expert to ensure your business is operating within the law.
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For all the key information on the red diesel duty changes, download our PDF.
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