Red DIESEL MEMBER GUIDANCE - TRANSITIONING from - Scottish Plant Owners Association
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TRANSITIONING from red DIESEL MEMBER GUIDANCE w w w. s p o a .o r g. u k
Foreword
Contents On April 1st 2022, our industry will face the first
in a series of major changes that will affect our
Foreword 3 Alternative Fuels 13 industry and environment forever.
Are You Ready? 4 Fuel Management 18 The removal of the construction sector’s entitlement to rebated fuel
“Red Diesel” will impact us all and whilst many in the industry may
What is Red Diesel? 5 Guidance 22 believe this is little more than revenue raising by a post pandemic
Financial Implications 6 Removing the Grey Areas 24 Government, we must look beyond the short term and consider the
bigger picture.
Traces of Red Diesel 7 Rebated Fuel 26
The removal of Red Diesel entitlement should act as a driver for SPOA
What Should a Business Do 8 Impact on Training 27 members and the entire industry to operate more efficiently and
Who is Responsible 9 Checklist 28 effectively, to consider alternative fuels, consider our impact on the
environment and the future of our industry.
Enforcement 10 Guidance Stickers 29
Is this the catalyst we need to raise our own pricing? The alternatively
Evidence 11 References 30 fuelled equipment of the very near future will cost more – anything
between 15% to 200%. We need to act now, come together as an
Running Continuously 12 Notes 31
industry and future proof it for our future members.
Producing this document has been a pleasure and I thank my
counterparts at HM Revenue and Customs for reviewing and
approving the contents prior to circulation.
This guidance is intended to help you navigate the challenges ahead
S c o t t i s h P l a n t O w n e r s A s s o c i at i o n , and will be updated as necessary. Your association is here to help, I
3 1 9 S t V i n c e n t S t r e e t, G l a s g o w, G 2 5 R Z would urge you to share this with your colleagues & customers and
Phone: 0141 248 3434 | Email: info@spoa.org.uk contact us with questions, feedback and any experience you have with
w w w. s p o a . o r g . u k alternative fuels that you would be happy to share with fellow members.
2 Callum Mackintosh | President 3
© Scottish Plant Owners Association 2022, Guidance only: Specific advice should be taken on any individual matter.
ARE YOU READY FOR
RED DIESEL CHANGES?
During Budget 2020, the the UK, and produces almost 14 million
tonnes of CO2 per year.*
UK government announced
Since the idea was first mentioned in
that it would remove the
2018 the SPOA has been very active in
entitlement to use red engaging with HM Treasury. During 2020
diesel (gas oil) and rebated and 2021 we requested HM Treasury
delay the rebate removal, we proposed
biodiesel for many sectors
a structured plan out of fossil fuels for
and applications, as of all industry and we proposed a fuel
1st April 2022. duty rebate on HVO. During 2021 your
association has participated in working
The move is intended to reduce the
commercial use of red diesel, compelling
groups and collaborated with HMRC
on consultation to develop workable
What is Red Diesel?
a range of industries – including industry guidance.
construction and leisure – to turn to
other options such as unrebated white This guide provides an in-depth
diesel or switch to cleaner alternatives
overview of the red diesel changes to ‘Red Diesel’ is a fuel that is Red Diesel is the same as regular white
help companies navigate the evolving diesel but with a red dye and chemical
Changes to the rules around red diesel landscape and understand whether or
currently used in off-road
markers added to it to prevent its misuse in
are part of the government’s efforts to not the rule changes apply to them. For vehicles and machinery. road vehicles.
achieve the target of net zero carbon non-exempt businesses, the time is now It is used in a number of
Other rebated fuels are available in the form
to plan and adapt your fuel mix to ensure
emissions by 2050. The UK is the first industries, most prominently of Red HVO Green D+ and Red GTL, both of
country to sign this ambition into law, not only compliance, but also that your
business can continue to run smoothly – construction, demolition, these are affected by the changes outlined
and further regulatory changes can
be expected in the months and years read on for everything you need to know. quarrying, mining and in this document.
to come. Taxing most users at the agriculture where users are
standard rate for red diesel is intended *HM Treasury, Reforms to the tax treatment of entitled to a rebate on the
to reflect the impact of the emissions red diesel and other rebated fuels: consul-
tation, July 2020. https://assets.publishing. tax or duty paid on the fuel
they produce, while incentivising energy service.gov.uk/government/uploads/system/ purchased.
efficiency and the use of cleaner fuel uploads/attachment_data/file/899174/ Consul-
alternatives. Indeed, red diesel accounts tation_on_reforms_to_the_tax_treatment_of_
red_diesel_and_other_rebated_fuels.pdf
for around 15% of all diesel oil used in
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© Scottish Plant Owners Association 2022, Guidance only: Specific advice should be taken on any individual matter. w w w. s p o a . o r g . u k
When might traces of red diesel
What are the financial implications be found in plant and equipment
of the rule changes? used for construction work?
Red Diesel (gas oil) This will have a significant impact on
costs as well as cash flow for many
For a short period of time will not be able to use or dispose of it
before 1st April 2022, should contact oils.
attracts a rebate of after the rules change on
businesses. This is why now is the time to policymail@hmrc.gov.uk.
46.81 pence per litre (ppl), consider fuel options and alternatives, as 1st April 2022, businesses
HMRC acknowledge that due to the
giving it an effective duty well as optimal fuel efficiency. may find that traces of red
requirement to maintain minimum
rate of 11.14ppl. At the same time, the plant industry diesel are still present in fuel stock levels for safety reasons and
must also contend with a number of the fuel tanks of vehicles operational requirements, fuel which has
challenges including one-off costs in or machines on site as the had full duty paid may be put into and
White Diesel (DERV) order to stay compliant. These may mixed with existing stocks of rebated fuel in
fuel is used up before being
on the other hand, has include the costs of removing or running the tank. This may mean there may be a red
no rebate, which means down red diesel, purchasing additional replaced with white diesel. indicator in the tank beyond 1st April 2022.
a duty rate of 57.95 ppl. tanks, vehicles or equipment, sourcing How long this will take Businesses will not be expected to flush
Therefore, making a
alternatives before the April deadline. will depend on the type of out all traces of red diesel from storage
straight switch from red Furthermore, as both red and white vehicle or machine, the size tanks but should plan to empty and refill
diesel become yet more attractive of its fuel tank, its rate of them with white diesel before putting
to white diesel would
targets for theft, the high number fuel into their vehicles or machines after
incur an additional of vehicles and large stores of fuel at
fuel consumption and how the rules change.
expense of 46.81 pence construction sites are coming under frequently it is used.
There is also a possibility that traces of
per litre used. This particular threat. Businesses that currently use red diesel red diesel may be found where plant
results in five times as but will no longer be entitled to after 1st and equipment is used for both entitled
much duty as before. April should plan to run down the fuel and non-entitled purposes (such as
in their vehicles and machines and use agriculture and construction work).
up existing stocks being held in storage
by this date. Companies which have a
large volume of rebated diesel already
in reserve and are concerned that they
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© Scottish Plant Owners Association 2022, Guidance only: Specific advice should be taken on any individual matter.
Who is responsible for ensuring that
red diesel is no longer used in plant and
equipment for construction work?
What should a business do Plant owners should read the HMRC guidance to confirm
whether their plant and equipment is to be used for an
if it finds any red diesel in plant and equipment to entitled purpose or not. When being used for construction
be used for construction work after 1st April 2022? work from 1st April 2022, it will be illegal to use red diesel.
HIRE COMPANIES CONTRACTORS SUPPLIERS
Hire companies should Contractors should Suppliers who are
Businesses should always check what fuel is in the tank
make their customers ensure that the plant and Registered Dealers in
before starting operation. aware that the fuel they equipment they use on Controlled Oil (RDCOs)
This can usually be done from the ground at the tank sight glass/tube or at the water are permitted to use site is always filled with should make their
separator filter bowl. If red diesel is found, businesses should not use the plant or depends on the sector the the correct fuel – if diesel, customers aware of the
equipment until they have flushed the tank and refilled with the correct fuel and vehicle or machine will be then it must be white rule changes and prevent
evidence should be kept to prove that this was done. used in. Hire companies diesel or similar duty paid them from purchasing
should always ask what fuel unless contracting on more red diesel than can
If the plant or equipment is hired in after 1st April 2022 and has been delivered with
the vehicle or machine entitled works. be used before then.
a full tank of Red Diesel then that tank may be used up so long as the machine was
will be used for and, if it is
filled with fuel prior to 1st April 2022. This will obviously only cover the short term. If in
unclear whether it is for
any doubt, businesses should contact the hire company and inform them that the
an entitled purpose, then
vehicle or machine contained the wrong fuel for the intended use when hired.
it should be fuelled with
white diesel or similar duty
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© Scottish Plant Owners Association 2022, Guidance only: Specific advice should be taken on any individual matter.
paid fuel.
Enforcement:
What action will HMRC take if they find
red diesel in plant and equipment being
used for construction work?
HMRC officers may carry In this situation, HMRC has confirmed
it will take a pragmatic approach to
out checks on any plant and
enforcement and consider the steps
equipment using diesel to
confirm the correct fuel is
taken to switch to using fully duty-paid What evidence do businesses need to
provide to show that plant and equipment
diesel.
being used. This should be Where rebated fuel is used in a vehicle
done by test to check for the or machine that is not entitled to was filled correctly with white diesel?
fiscal markers mentioned on use it, HMRC can seize the vehicle or
machine and issue a £250 civil penalty
page 19 and not just be done
under section 9 of the Finance Act 1994.
by colour of fuel alone. HMRC may also apply a penalty up to
100% of the duty that has been evaded Businesses should ensure they have the following
If they find traces of red diesel in the
fuel supply of a vehicle or machine that depending on the offence. documents in the event that HMRC has to assess whether
is not entitled to use it, they may ask plant or equipment was filled with the correct fuel:
the business to provide evidence to
demonstrate that any rebated fuel in the
vehicle or machine was put in before the Receipts or invoices for the purchase of fuel
rules changed and is still being used up. Contracts for the hire of plant or equipment
Run plans
Time sheets of drivers/operators
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© Scottish Plant Owners Association 2022, Guidance only: Specific advice should be taken on any individual matter.
Alternative Fuels:
HVO Green D+
What is Green D + HVO? HVO Green D+ is a renewable diesel
What happens if plant and equipment is A member of the paraffinic
replacement made to EN15940 standard.
Available as both “RED” rebated fuel
running continuously (e.g. power generation) fuel family, HVO is a drop- for entitled sectors such as agriculture,
forestry, aquaculture and also “WHITE”
in liquid fuel alternative
where the tanks cannot be flushed produced from vegetable
undyed for road use and construction
sectors. It is the lowest emission diesel
out or a minimum level of fuel must be fats and oils, such as replacement fuel available. GD+ is made
entirely from waste and is defined as
maintained for safety reasons? cooking oil.
HVO has an improved burn efficiency and
renewable and sustainable (RED11), whilst
being highly refined. You can use Green
reduced carbon emissions count, resulting D+ in any diesel engine without requiring
any changes to the engine.
in a significant decrease in harmful
emissions, including greenhouse gases. HVO Green D+ contains a specifically
Businesses will need to show that they have been refilling designed performance additive, which
Here, hydrogen – rather than methanol
with the correct fuel since the rules changed, e.g. by – is used as a catalyst, making HVO more includes deposit control compounds,
showing receipts for the purchase of white diesel. clean-burning and ensuring a longer lubricity improves and other surface-
shelf life than regular biodiesel. The HVO active agents to ensure cleanliness
Businesses may use up rebated fuel held in storage tanks for the purposes of and optimum combustion throughout
supply chain is currently being developed
emergency back-up power generation (where a generator is used to provide the fuel system. Through minimising
to ensure consistent high-quality and
continuity of power in the event of power failure) after the rules change. NOX it allows the additive to promote
ethical supply, and expanded to support
passive regeneration of the DPF system.
You can only use rebated fuel stock obtained before 10th June 2021 for back-up power anticipated growth in demand – increasing
Choosing to switch to HVO Green D+
purposes. Any rebated fuel purchased after that date for this purpose and not used by its potential for global adoption as part of
could be a great selling point especially
31st March 2022, will require a licence to use and the duty difference will need to be paid. the future fuel pathway.
for those whose clients really do care
about emissions.
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© Scottish Plant Owners Association 2022, Guidance only: Specific advice should be taken on any individual matter. w w w. s p o a . o r g . u k
Alternative Fuels:
HVO Green D+
What Can HVO be made from?
FIRSTLY SECONDLY THIRDLY WHY IS 1 Diesel machine has the
ENTITLEMENT
same CO2e emissions as
HVO can be made from Fish fat from Residues from
animal fat from food processing waste. vegetable oil processing TO REBATED
industry waste. Used Cooking Oil. HVO BEING 10 GREEN D+ machines
REMOVED TOO?
Benefits of HVO GreenD+: OEM Approval: HVO
HVO is a hydrocarbon
per the Hydrocarbon Oil
There are whole host of benefits of Green D+ is approved
Duties act 1979, classified
using a renewable diesel replacement; for use by the following
as a heavy oil it attracts
Scania the same duty rate as
VS
Upto 90% reduction in Co2
Volvo diesel. We believe there
Upto 30% reduction in nox DAF
is a great opportunity for
Upto 86% reduction in particulate matter MAN the Government to offer
Mercedes Benz a rebate on HVO Green
Reduces noise levels
Renault D+, incentivising industry
Local air quality improved immediately through Iveco to adopt this low
switching Caterpillar emission interim fuel.
John Deere
Can remove fossil fuels from construction sites
Hitachi
Fuel efficiency improvement – The fuel burns more JCB
cleanly and more thoroughly This list is growing
steadily as
Does not contain FAME (Fatty Acid Metyl Ester) manufacturers
finalise their trials
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© Scottish Plant Owners Association 2022, Guidance only: Specific advice should be taken on any individual matter.
Alternative Fuels:
Shell GTL (gas-to-liquid)
What is Shell GTL? The European Standardisation body
CEN published the final specification
for paraffinic fuels, EN-15940, in mid-
Shell Gas-to-Liquid
2016, paving the way for legislators and Benefits of Shell GTL: There are whole
technology converts natural manufacturers to specifically refer to
gas into a paraffinic fuel, these alternative fuels in legislation
host of benefits of using GTL as a
creating an OEM approved and handbooks. GTL is a direct drop in diesel replacement;
replacement to Diesel.
cleaner-burning alternative Upto
37% reduction in nox
liquid fuel for both on- and It is estimated that there is currently Upto 25% reduction in particulate matter
sufficient global supply of GTL fuels
off-road applications. Reduces noise levels 3-5dB
to meet around 30% of the UK’s
This helps to reduce local emissions of entire national diesel demand, or Drop in fuel – Can be used as a direct replacement
pollutants, including nitrogen oxide and
the total diesel demand of any of the for conventional diesel fuels without the need for
particulate matter, to improve air quality Scandinavian countries modifications to engines
while also decreasing noise and odour
pollution. What’s more, this drop-in solution Better safety, handling and storage characteristics
helps to improve ‘cold starts’, reduce due to a higher flash point
clogged filters and offers a long shelf OEM Approval: Shell GTL is
Readily biodegradable, is not detectable in soil 51
approved for use by the following
life – ideal for back-up power generators days after being introduced
and final fill pre-winter – without any Scania Cummins
modifications to vehicles or engines or Volvo Caterpillar Better starting performance in cold conditions due
investment in additional infrastructure. Gas DAF John Deere to higher cetane number
MAN Hitachi
to Liquid “GTL” Fuel is part of the family of Fuel efficiency improvement – The fuel burns more
fuels called “paraffinic fuels”. This list is growing steadily as cleanly and more thoroughly
manufacturers finalise their trials
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© Scottish Plant Owners Association 2022, Guidance only: Specific advice should be taken on any individual matter. w w w. s p o a . o r g . u k
Loss Prevention
and Fuel
Management May a dye or chemical marker be added to fuel?
Businesses are permitted to add dye or test positive for any of the prescribed
chemical markers to fuel as long as the markers
One of the biggest concerns to
dye or chemical markers do not:
affect or impede HMRC’s ability to
the Plant Industry is an increase Contain
any of the prescribed test for the prescribed fuel markers.
Government markers listed
in fuel theft. Red diesel contains a chemical marker
in Regulation 3 of the Hydrocarbon
The UK government committed to putting extra police on Oil (Marking) Regulations 2002, which HMRC will look for when testing
the streets in the 2020 Budget to combat fuel theft but namely; diesel. Companies planning to add
besides the naivety of that commitment, policing is devolved dye to their fuel, for example to act as
N-Ethyl-N-[2-(1- a deterrent against theft, should give
in Scotland and so the SPOA members are rightly even more
isobutoxyethoxy)ethyl]-4- careful consideration to the colour they
concerned about fuel theft as it has not been addressed by
(phenylazo)aniline together intend to use as HMRC officers are
either government to any satisfactory standard.
with CI Solvent Yellow 124 likely to test any visibly coloured fuel to
Here we’ll explore some of the fuel management options determine its contents.
“coumarin” meaning 1:2
along with deterrents currently available on the market.
benzopyron
Businesses should review security both on site and at your
“ quinizarin” meaning
depot/yard, consider additional CCTV, fuel tank alarms,
1,4-dihydroxyanthraquinone
secure fencing of your fuel storage within your compound or
site. Do all you can to mitigate theft and restrict access.
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© Scottish Plant Owners Association 2022, Guidance only: Specific advice should be taken on any individual matter. w w w. s p o a . o r g . u kLoss Prevention
and Fuel
Management Fuel tank telemetry and dispensing
Italian manufacturer PIUSI has launched a range of innovative
equipment to help you both control and record fuel usage.
What dyes are available? Tracking PUISI B.SMART APP – Based on PUISI PW MOBILE – The PW Mobile
Datatag™ VENOM – A fuel additive Award winning GPS tracking provider Bluetooth technology the B.SMART app allows you to connect to your bowser via
which includes a DNA marker for CanTrack offer a sealed for life tracking is for drivers and a cloud for managers. the 4G network when no onsite wifi is
tracing fuel theft. unit which can be fitted discretely From the app automatically connect to available, great for remote areas you can
inside fuel bowsers and site tanks. the fuel bowser to allow delivery of fuel. obtain all fuel transactions easily.
DieselDye – DieselDye creates an
instant visual deterrent against CanTrack ASSET features a light sensor PUISI B.SMART MCBOX – This is the Through using these you could:
internal misuse and theft and movement sensor, this can be set new advanced model of the MCBOX Verify Supplies of fuel to
to alert you to things like the bowser fuel monitoring system; the electronic authorised users
door being opened out of hours. The control panel that allows you to control Manage your fuel and sites
unit can be hidden almost anywhere any type of AC/DC pump, litre-counter,
Get fuel use information in real
and can assist in recovery of entire site nozzle and fuel level switches. Add
time, order refills on time
tanks which have been hiab’d away. this to any bowser and connect to the
Measure fuel tank activity out of
MCBOX with the app above to dispense.
Other trackers are available. hours, set alarms for level change
B.SMART Tank Watchdog – This is
the perfect add on for a complete and
updated control of the stock. Adding
the level indicator OCIO, the system
allows you to monitor the fluid level in
your tanks in real time and gives alarms
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© Scottish Plant Owners Association 2022, Guidance only: Specific advice should be taken on any individual matter. in case of low levels.Guidance
Self Drive Operated Contractors &
Plant Hirers Plant Hirers Sub Contractors
All plant hired into the and equipment is returned to them At point of hire your hire Moving to White Diesel will
which should note what fuel was in the
construction sector should desk should ask if the have a significant impact
equipment. This should be carried out
be supplied with White before it is collected from site, where Red machine will be used on on cashflow particularly
Diesel. At point of hire your Diesel is found a subsequent “cleaning” a project entitled to Red where large volumes of fuel
hire desk should ask if the charge should be negotiated. Diesel Rebate and explain are consumed and not paid
machine will be used in It is recommended that Red Diesel the “cleaning” charge at for by the client until the
industries entitled to Red removed from an off hired machine the end of the hire if they next stage payment.
should be pumped out from the
Diesel Rebate and explain supply Red Diesel for use Use this time to re-confirm or adjust your
machine and appropriately filtered
the “cleaning” charge at the and stored for reuse in entitled sectors, in your machine. payment terms with your clients and credit
end of the hire if they use consideration of its reuse should be It is recommended that Red Diesel
terms with your fuel suppliers as cash flow
will become increasingly important.
Red Diesel. made when calculating your removed from an off hired machine
“cleaning” charges. should be pumped out from the Consider your one-off costs in order
For hirers entitled to use Red Diesel
Members should also note the amended machine and appropriately filtered to stay compliant. These may include
they should be encouraged to return
clause 12(e)* in the SPOA terms and and stored for reuse in entitled sectors, the costs of removing or running
the machine without having filled it up
conditions of hire consideration of its reuse should/ down red diesel, purchasing additional
with fuel.
could be made when calculating your tanks, security, deterrents, vehicles or
Hire companies should always complete “cleaning” charges. equipment, sourcing alternatives before
a post-hire inspection when plant the 1st April 2022 deadline.
Businesses will not be permitted to use
*12(e) Other Costs - If using duty rebated fuel (like Red Diesel) the Hirer shall drain the tank
of such fuel at the end of the Period of Hire and, if there is failure to do so, the cost of the Owner Plant Red Diesel in plant depots or yards, this
Depots
draining the tank and replenishing with duty paid fuel shall be charged to the Hirer at the
minimum rate of one hours labour plus fuel used/replenished. applies to forklifts, shunters etc.
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© Scottish Plant Owners Association 2022, Guidance only: Specific advice should be taken on any individual matter. w w w. s p o a . o r g . u kRemoving the grey areas:
You will be able to use rebated fuel in vehicles and Forestry & Agricultural: You CAN use Red Diesel to carry the
materials or equipment in Excepted
machines used for accepted purposes if you’re in any of You can use Red Diesel for creating and
Vehicles that you need to do the
the following sectors or situations: managing forest roads and stacking forestry work
areas, these are key to the management
You CAN use Red Diesel to remove any
of a successful commercial forest. In the
produce on waste resulting from the
view of HMRC ref: excise notice 75 para
Ditch Clearing & Drainage: You can use rebated fuel for ditch clearing and contracted work
8.23 * “forestry – the science and art of
drainage only if it is done solely for the benefit of land used for agriculture, forming and cultivating forests and the You CAN use Red Diesel to transport
horticulture or forestry. management of growing timber” & the road planning’s, crusher run and other
meaning of purposes relating to forestry material for the repair of unsealed
Fish Farms: You can continue to use red diesel for all existing permitted purposes. tracks – Excise notice 75 para 9
“Forestry is the upkeep and management
“movement of forestry inputs
Snow Clearing & Gritting: You can use rebated fuel in an agricultural vehicle as of forests including the growing and
defined in Schedule 21 [section27(1)] to spread grit on a public road to deal with harvesting of timber.” You CANNOT use Red Diesel for the
snow and ice, to get to and from the place that needs gritting, and to collect the construction of buildings or other
This will be dependent on who is doing structures used for purposes relating
gritting equipment and material. the work and what that work entails. If, to agriculture, horticulture or forestry.
Dual Tanks: HMRC DO NOT permit any ‘dual tank’ fuel system that allows a for example, the forester (or contractor
You CANNOT use rebated fuel if you
vehicle/machine to swap between rebated and unrebated fuel. working for them) does this work as a
not directly involved in the forestry
necessary part of their forestry operation,
activity. Examples include:
I n some jurisdictions or countries, using marked fuel will still be legal in some of that would be an accepted forestry
Delivering materials or equipment
the sectors (including machines and appliances) that will no longer be allowed activity. If a roadbuilding/civils business
that a forester has leased or
to use rebated fuel in the UK from 1 April 2022. If you refuel and use your vehicle
st does this work to create the road before
purchased from you
(including machines or appliances) in a jurisdiction or country where using any forestry takes place, that would be
A haulier employed to transport
marked fuel in that vehicle is allowed, you can use up the remaining fuel in the considered construction work which is a
goods or equipment to or from
machine when you return to the UK. - An example of this scenario would be non-forestry activity
a forest.
Hiring a machine onto a job in Dublin, Ireland and it returns back to your depot If you are contracted or otherwise
*Excise notice 75 will be replaced or
in Scotland. You will need to retain receipts or other documents to show that you engaged to carry out forestry work:
updated for April 2022
have not refilled your vehicle (including machines or appliances) unlawfully in the ou CAN use Red Diesel to drive to and
Y
UK. You will not need to flush the tank of your vehicle on your return to the UK. from the forest in Excepted Vehicles
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© Scottish Plant Owners Association 2022, Guidance only: Specific advice should be taken on any individual matter. w w w. s p o a . o r g . u kWhat vehicle (including any machines or appliances)
can use rebated fuel for accepted uses
Agricultural vehicles - Special vehicles - A special
an agricultural vehicle is a: vehicle is a vehicle designed,
constructed and used as set
tractor
out in Part 4 of Schedule 1
single seat, light vehicle (less than
1,000 kilograms), designed and
to the Vehicle Excise and
Registration Act 1994, but
Impact on Training
constructed mainly for off-road use without any weight restriction.
vehicle licensed only for use Special vehicles include:
between different parts of land for
digging machines
purposes relating to: With the current shortage in plant operators across
mobile cranes
agriculture Scotland and the rest of the British Isles it is more
mobile pumping vehicles
horticulture important now than ever that the construction industry
work trucks
forestry encourages new entrants into the plant sector to create
road rollers
ehicle constructed and adapted,
v the operators of the future and reduce as many of the
with built-in or permanently potential barriers within their career path as possible.
attached handling and processing Other machines, appliances
Every company who invests in their employees or individuals who develop their own
equipment, to be used for purposes and unlicensed vehicles
plant operator qualifications will unfortunately be effected through the increase in
relating to agriculture, horticulture, include:
training course costs.
fish farming or forestry
machines or appliances that are
Training providers are also losing entitlement to Red Diesel Rebate and will be
not a vehicle or vessel
required to deliver all plant training using White Diesel. Initial estimations are that
non-road mobile machinery this will result in a 4-6% increase onto the overall cost of any plant operator course.
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© Scottish Plant Owners Association 2022, Guidance only: Specific advice should be taken on any individual matter. w w w. s p o a . o r g . u kChecklist:
businesses should take action now to
prepare for this change from 1 st April 2022
Guidance Stickers
Brief your staff on the new legislation
Assess existing stocks of red diesel and develop a plan for running them down Stickers should be put on or near
Identify all plant and equipment you own, hire, lease or use that fuel tanks on plant and machinery
currently uses red diesel and on fuel bowsers and tanks. Scan the
Determine a schedule for moving to white diesel Use the stickers to remind users to put white QR Code to
diesel (or equivalent) into fuel tanks from 1st April. download
Review existing contracts with both clients and suppliers for any
potential price implications from the loss of entitlement
We’ve produced artwork for stickers for you to use the sticker
on your machines and bowsers. artwork.
Discuss with your clients the cost implications of plant and equipment
using white diesel from 1st April 2022
Confirm your payment terms to your clients and customers as cash flow WHITE DIESEL
ONLY
will become increasingly important
Talk to your diesel supplier to check your credit terms going forward
Review your security both on site and at your depot/yard, do all you can
to mitigate the theft risk
HVO GREEN D+
ONLY
Keep all records of fuel purchase and use organised
Update your Terms and Conditions
Put stickers on or near fuel tanks on plant and machinery, reminding
users to put white diesel (or equivalent) into fuel tanks from 1st April. See
GTL FUEL
ONLY
page opposite.
A downloadable version of this guidance can be found on the SPOA
website or by scanning the QR Code on page 30.
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© Scottish Plant Owners Association 2022, Guidance only: Specific advice should be taken on any individual matter.notes
REFERENCES
HMRC Seizing equipment
HMRC Guidance: Check when Red Diesel can be used
HMRC Guidance: How to prepare for the changes to rebated fuel if you’re a fuel user
HMRC Excise notice 75
Renewable Diesel Handbook
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Thanks to reference
HM Revenue and Customs | Confor | FCA
links...
Oilfast | Certas | Crown Oils | Neste
w w w. s p o a .o r g. u k
The information contained in this note is for general guidance only and represents our understanding of relevant
law and practice as at February 2022. Products mentioned in this guidance are the result of SPOA research and
are not paid for advertising. The Scottish Plant Owners Association cannot be held responsible for any action
taken or not taken in reliance upon the contents. Specific advice should be taken on any individual matter.
30 31
© Scottish Plant Owners Association 2022, Guidance only: Specific advice should be taken on any individual matter.S c o t t i s h P l a n t O w n e r s A s s o c i at i o n ,
3 1 9 S t V i n c e n t S t r e e t, G l a s g o w, G 5 2 R Z
Phone: 0141 248 3434 | Email: info@spoa.org.uk
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