Changes to Red Diesel are coming from 1st April 2022
You will probably be aware that the UK Government is making changes to the taxation of red diesel or rebated fuel.
From 1st April 2022, it will no longer be permitted to use rebated red diesel in most types of plant, machinery and construction equipment. Instead, all equipment must use diesel or biofuels, on which the full rate of duty has been paid.
The rebated fuels affected by these changes are:
- rebated diesel
- rebated Hydrotreated Vegetable Oil (HVO)*
- rebated biodiesel and bioblend
- kerosene taxed at the rebated diesel rate
- fuel substitutes
*HVO is a liquid hydrocarbon which is classified for excise purposes as heavy oil and treated the same as diesel.
What will this mean for you?
As a valued customer of Total Hire and Sales we wanted to let you know how your hire will be affected on products such as compact plant, powered access equipment and certain types of tower lights. Also, if you purchase fuel directly from or in a hired fuel bowser or tank/caddy this will be covered by the new legislation.
You will need to run down your stocks of red diesel in plant and construction equipment to transition to white diesel or biofuel in advance of 1st April 2022.
The end of rebated red diesel means that all future fuel supplied by Total Hire and Sales will be subject to the standard 20% VAT rate.
What is Total Hire and Sales doing to prepare for the new legislation?
- Total Hire and Sales will cease supply of red diesel and only provide equipment with white diesel from Tuesday 1st March 2022
- From 1st April 2022 it will be illegal to use red diesel in the type of equipment supplied by Total Hire and Sales
- If red diesel is used in any Total Hire and Sales rental equipment on or after 1st April 2022, our team reserves the right to apply additional charges to cover disposal, cleaning, disposal and re-fuelling of any plant and machinery.
For more details about the new legislation click here.
To check when rebated fuel can be used click here.
For all other enquiries, please contact the Total Hire and Sales team who will be happy to answer any of your queries. You can visit us at one of our depots or call us on 0800 023 8993.
Total Hire Team