Stuck with red diesel? HMRC advice on what you can do

Many firms will no longer be allowed to fill up tanks with ‘red diesel’ from 1 April.

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.

You may only use up rebated fuel after 1 April, if the fuel was legally put into your vehicle or machine before that date.

What to do with leftover rebated diesel in your storage tanks

HMRC suggests you can:

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].