With the 1st April 2022 creeping closer and closer, now is the perfect time to look into the potential ramifications across a number of industries. While farming and agriculture is currently an exemption to the sweeping chances across other industry sectors, there are still some changes that may have an impact on the daily running of your business. Here at Compass Fuel Oils, we are the UK’s leading fuel oil specialists, providing next day delivery across the UK. As a result, we have created this guide to everything you will need to know about the changes to red diesel use in farming.
So, how will red diesel changes impact farming?
The changes to red diesel legislation will have a number of effects on the application of red diesel for farming and agriculture. Essentially, the rules will now dictate that red diesel can only be used in farm machinery and vehicles for the sole purposes of farming. Recently HMRC answered some important questions from the farming community, hosted by Ulster Farmers’ Union. This covered some of the most pertinent questions and issues associated with the red diesel legislation changes. These questions include:
- Dual role tractors
- Hauling stone
- Travelling to connecting fields via roads
- Transportation of livestock
- Contractors
How can a tractor be used for multiple jobs if two different types of fuel are needed?
In answer to this question HMRC provided 3 possible solutions. The first is to use a different tractor for each role, if multiple vehicles are available. The second is to use white diesel for the whole day, or week, or schedule the week so that the diesel doesnt need to be changed during the day. The final option is to drain and flush the tank to remove any rebated fuel.
Can a tractor use red diesel to haul stone?
HMRC have stated that this is acceptable as long as the stone is used for agricultural purposes like drainage then this would fall into the remit of permitted use.
Can red diesel be used to travel between farmers fields via a main road?
If the purpose of travelling between the fields is for farming, such as dumping clay, then this is an acceptable and permitted use of red diesel.
Can red diesel be used to transport livestock?
This easily falls into the remit of farming or agricultural work and therefore red diesel is permitted to transport livestock.
If a contractor is hired for building work on the farm can red diesel be used?
A contractor from outside of the agricultural industry will not be permitted to use red diesel, even working on your farm.
For all your fuel oil needs, from storage tanks to red diesel deliveries, we are the team you can count on, here at Compass Fuel Oils.