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Contact Us Now!Following last year’s announcement that the government is removing the red diesel entitlement for many sectors, businesses have been eagerly waiting to hear what updates the Budget 2021 will hold. The latest budget confirmed some changes to red diesel taxation in response to the consultation it held on the red diesel rebate in 2020.
Last year, the government announced that it’s removing the entitlement to use red diesel for many sectors from 1 April 2022. The sectors that were said to remain eligible for red diesel use would be:
During the latest budget, the Chancellor added some additional sectors to the list for those that will retain permissions to use the rebated fuel after April 2022:
This means those industries not included in the above list will have to use fuel that’s taxed at the standard rate for white diesel. Those no longer able to use red diesel after 1st April 2022 are:
The government is also extending fuel duty to biodiesel, biofuels and fuel substitutes intended for heating, employing the rebated duty rate to non-commercial heating and the full rate of duty to commercial heating.
HMRC will also be authorised to disapply its powers to seize vehicles or other machinery in specific cases.
Speedy Fuels can help with every element of your fuel changeover, including providing end to end consultancy and guidance while ensuring your tank is compliant with all relevant standards. We can:
Our fuel experts can help you tackle the immediate challenges of red diesel replacement and navigate the most cost-effective route to long-term compliance.
The government revealed in its 2020 Budget how it planned to remove the subsidy on red diesel from 2022, with the exception of use for onboard heating. However, at Budget 2021, the government took a U-turn and disclosed that it will continue to enable private pleasure craft to use red diesel for all purposes where they can continue to pay their supplier the difference on the quantity proposed for propulsion.
The government has also announced that it proposes to mandate that registered fuel suppliers switching a fuel tank from red to white diesel must flush out the tank and supply lines to ensure no trace of marked fuel remains. This is to ensure compliance and reduce the risk of white diesel being contaminated with the red diesel marker.
Red diesel users that will lose their red diesel entitlement must not purchase red diesel after 1 April 2022 and use up existing stocks beforehand.
Our industrial tank cleaning and fuel uplift services are available nationwide to ensure your business is operating within the law. Our engineers can clean all traces of red diesel from your tanks and ensure that there are no remnants left. We can collect and buy back your red diesel, giving you the opportunity to sell at the best possible price before rates plummet further.
We also supply a wide range of steel and plastic fuel tanks to ensure your stored fuel is compliant with the latest regulations.
As we approach the 2022 date, it’s important to ensure you have a fresh supply of the correct fuel type. We deliver red and white diesel across the UK, giving you complete peace of mind that you can gain access to a reliable supply of fuel.
If you would like to learn more or have any questions. Get in touch with our red diesel experts by calling us on 0330 123 3773 to find out more about how we can help your business.