Changes to Red Diesel Taxation: Are You Ready?

In the March 2021 budget, the Government announced forthcoming changes to red diesel taxation, with plans to withdraw tax relief for Red Diesel for several sectors and user groups including the MOD.

KEY POINTS
  • Red diesel cannot be used in non-roadgoing or stationary engines from 1st April 2022.
  • Machinery can be seized if red diesel remains beyond 1st April 2022.
  • Best practice for tanks and pipework is to be cleaned prior to new product being delivered.
  • The new fuel should be white diesel or a synthetic diesel alternative
KEY DATES & INFORMATION FOR MOD SITES
  • From 1st April 2022, DIESO UK will no longer be permitted to be used within the MOD.
  • All remaining stocks in tanks are to be run down by 1st April 2022.
  • All MTFI and infrastructure are to be changed to DIESO MT.
  • Any infrastructure no longer required is to be decommissioned.
Diesel Detective

ACT NOW TO AVOID PENALTIES

In the March 2021 budget, the Government announced forthcoming changes to red diesel taxation, with plans to withdraw tax relief for Red Diesel for several sectors and user groups including the MOD. Here’s a short overview of the changes and the potential implications for your business.

WHICH INDUSTRIES WILL BE AFFECTED BY RED DIESEL CHANGES?

The following industries will no longer be permitted to use red diesel as a rebated fuel from 1st April 2022:

  • Construction
  • Road Maintenance
  • Logistics and haulage
  • Mining and quarrying
  • Oil and gas extraction
  • Waste management
  • Commercial heating
  • Leisure
  • Airport operations and ports
  • Manufacturing

Industries exempt from the changes to red diesel taxation include:

  • Vehicles and machinery used in agriculture, horticulture, forestry, and fish farming.
  • Rail including passenger, freight and maintenance vehicles that run on rail tracks.
  • Non-commercial heating and electricity generation (such as town halls).
  • Commercial boating industry.
ACT NOW

Contact our Fuel and Power Management team for further information and to find out how best we can help you prepare prior to the legislation coming into effect.

0333 444 0004  / [email protected]

Government Policy Paper

Please note that the full Government Policy Paper published 3rd March 2021 can be found here.

OUR SERVICES INCLUDE:
  • Fuel sampling
  • Fuel cleaning to specification
  • Fuel transfer
  • Tank cleaning/pipework flushing
  • Tanker uplifts
  • Supply and installation of fixed fuel polishing
  • Systems that are suitable for red/white diesel or
  • Greener alternative fuels like HVO and GTL
  • Tank decommissioning
  • New tank installations

Date Posted: 12/10/2021