April 1, 2022, was the day when regulations around red diesel were changed. Those who used to power their off-road vehicles and machinery lost the prerogative to use red diesel anymore. As per the announcement, some industries have been stopped from using red diesel on the road. Whether these protocols apply to the agricultural industry or not is what we’re going to discuss today. It’s an important write-up as it will help farmers stay compliant with the new regulations. So, stay with us…
What is Red Diesel
For those who don’t know what red diesel is, here is a simplified version. Red diesel is a regular fuel that can be used by off-road vehicles and machines with a reduced rate of duty. Red diesel is dyed red to distinguish it from the white diesel to ensure its usage only for permitted purposes. It is also known as rebated fuel due to the lowered duty rate and is intended for off-road vehicles.
Can Farmers Use Red Diesel on the Road
Farmers in the UK can use red diesel on public roads only in specific circumstances permitted by HMRC. These include activities like travelling between different parts of farmland, driving to a local fuel supplier, or using the vehicle for agricultural, horticultural, or forestry purposes. However, using red diesel for non-permitted road travel is illegal and can result in heavy fines or vehicle seizure. Always check the latest HMRC guidance to stay compliant.
Government Regulations About Red Diesel for Farmers
Here are some things that farmers need to understand:
· What Matters is the Use, Not the User
We’re saying that the authorities haven’t conveyed that farmers may use red diesel as a whole, but that red diesel may be used for agricultural purposes. Now, you’ve to make the distinction. If you use red diesel for agriculture, horticulture, or forestry-related objectives, it is permissible like moving machinery, produce, livestock, and waste. However, if you use red diesel for any other purpose outside the constraints of ordinary farm usage, chances are that you might be out of line here.
From this point of view, a farmer moving his livestock from the farm to the market for auction sale can be considered right. But a farmer using red diesel in tractors to maintain recreational sites like parks or tennis courts isn’t permissible.
· Still Legal for Live-On-Farm Machinery
Another big confusion is related to the permitted and non-permitted agricultural use of machinery or vehicles. The government has accepted the use of rebated fuel in agricultural vehicles, machines, and appliances on private land for personal purposes if you’re already utilising it for your agricultural work.
To explain it through an example, consider a farmer building a shed. If the farmer uses his farm machinery to build a shed on his own land, this is permissible. However, if the farmer hires a farm machine to construct a shed on his private land or uses his own machinery for shed construction on a neighbour’s land, this is non-permissible.
· Avoid Penalties Through Tank Flushing
Farmers will have to keep supplies of both rebated and non-rebated fuels for permitted and non-permitted jobs. They should have separate storage tanks for each type of fuel, flush out vehicle and machinery tanks between permitted and non-permitted tasks, and use only white diesel or alternative fuel for non-permitted jobs. HMRC will have the authority to spot-check, and non-compliant farmers will be issued fines, or their machinery will be seized.
To stay compliant, farmers will have to check for permission from the hiring company for using white instead of red diesel when hiring machinery. This is particularly applicable for machinery intended to be used on construction sites as well. Farmers who fall foul of this may have to pay costs to the hire company to flush out red diesel from the tank while returning it.
· Rule Shifts Equal Rising Fuel Theft Risks
There is always a threat of fuel theft, which has now escalated for large stores, farms, etc. Duty equalisation has multiplied the risk, as more users fill their storage tanks with suitable alternatives to red diesel.
DERV and other fuels can further add to the possibility of more financial loss for farmers. This is because these fuels do not feature red dye as a hint for off-road use only. Plus, they cost more, i.e., 45ppl duty rise for white vs red diesel, making them more attractive for thieves.
To protect themselves from these threats, farmers can invest in the right security gear, including smart tanks with locks, and a telemetry system to monitor remote fuel.
Know Your Eligible Machinery
In general, red diesel can be used on the road by ‘exempted’ vehicles. But exemption is not enough. To qualify, these vehicles must be engaged in any horticultural, agricultural, or forestry-related activity. Following these ‘ifs’, any contractor or crop and land occupant can use the following:
- For cutting verges, trees neighbouring public roads, and any agricultural, horticultural, or forestry aims, you can use red diesel in tractors. Roads’ grating including travelling to or from the grating location is also legalised since November 2013.
- Certain ‘special’ appliances and machines are also allowed to use red diesel for doing agricultural work. These include mowing machines, cranes, diggers, etc.
- Mobile cranes and diggers when in use or travelling to and from the place of use, as long as they do not bear any excessive weight.
- Agricultural engines that suggest any self-impelled agricultural machines like pea viners, sprayers, and forage harvesters.
- Light agricultural vehicles or simply put, single-seater machine that weighs less than 1000kgs like ATV can be used.
- Materials handlers that include loading shovels and telehandlers.
- Gritters and snow clearing vehicles.
Compliance Made Simple: Stay Legally Fueled with 3 Simple Steps
Staying compliant is a relief for both farmers and the authorities. So, if you want to stay out of trouble, follow these simple instructions:
· Keep Tabs on Legal Use Guidelines
Visit the government’s website to read guidelines regarding red diesel tax rebate changes. Suppose you are unable to find your intended red diesel usage on the permitted applications list. In that case, you need to acquire confirmation from the government prior to proceeding with your activities or further purchases. Check the government’s site regularly to keep yourself notified in case of any further changes.
· Clear Out Pre-April Red Diesel
Another thing you could do to stay within the stated regulations is to run down your current red diesel stock before April 1, 2022. This didn’t mean that you need to get rid of every single drop through flushing. Rather, you need to be able to prove not having purchased or stockpiled any red diesel following the April 2022 deadline.
· Documentation is Your Defence
Maintaining your purchase and payment records is essential. It becomes even more significant for your red diesel procurement. You should keep all the evidences safe, i.e., purchasing and delivery documentation, to prove to the HMRC inspectors that you haven’t purchased the diesel after or near the April 2022 deadline.
Stay Legal with Every Drop – Powered by 123 Oil
Hope we were able to put together the essentials of red diesel compliance for you to easily understand and stay compliant with the new regulations. If you need both white and red diesel for your job then contact 123 Oil without any delay.
Operating 24/7, 365 days a year, we are your reliable, go-to option for supplying emergency Red Diesel, Kerosene, and Lubricants. Having been in for 50 years in the oil fuel distribution industry, we can be on site within hours in a run out or during an emergency fuel outage situation. Call us at 0775 991 4162 for nationwide fuel and lubricant supply in the UK. You can expect nothing less from us: fast, reliable, and efficient.
