Are you using Red Diesel? Do you know what's changing?

Members need to be aware of imminent changes to filling up tanks with ‘red diesel’ from 1 April.

Many firms will no longer be allowed to fill up tanks with ‘red diesel’ from this date.

The current government website pages on red diesel will be updated on April 1. Therefore it is important to look at guidance if you are looking for details of what happens after this date – including our documents for members.

You may only use up rebated fuel after 1 April, if the fuel was legally put into your vehicle or machine before that date. After 1 April 2022 red diesel may not be put into vehicles or appliances which are no longer entitled to use it.

Red diesel which remains in storage tanks after 1 April 2022 must be disposed of or transferred but there is not a requirement to flush out tanks. There are however requirements to flush out vehicles when switching between white and red diesel use for those falling under both the ‘allowed’ and ‘unallowed’ activities.

HMRC guidance

HMRC has also published guidance for fuel users on preparing for the change. Access it here.

HMRC says that the rebated fuel can only be used from 1 April for certain purposes in agriculture, horticulture, fish farming and forestry.

They acknowledge that some firms will have a surplus left over in storage tanks so have issued some advice.

They advise that if you’re no longer able to use rebated fuel, you should plan to run down the fuel you have to as close to nil as reasonably practicable before 1 April.

What to do with leftover rebated diesel in your storage tanks

HMRC suggestions

sell or give it to someone who is allowed to use it

sell or give it to any Registered Dealer in Controlled Oil (RDCO)

dispose of it via an approved waste oil recycling or disposal company

You will need to keep records to show how and when the fuel was disposed of or sold.

You can sell or dispose of the surplus fuel without needing to be approved by HMRC as an RDCO.

You should make sure that you dispose of surplus rebated fuel correctly and safely through an approved waste oil recycling or disposal company.

If you have a large volume of rebated diesel already in reserve and are concerned that you will not be able to use or dispose of it before 1 April 2022, you should contact [email protected]