Combined Industries Theft Solutions

Red diesel on construction sites after 31 March 2022

From the 1st April, the Government has removed the permission for plant and equipment used for construction purposes to use red (rebated) diesel. However, allowance is being made for a short transition period. To help avoid any misunderstanding on fuel usage during this time, the following points should be noted.

This guidance is based on information received from HMRC – for more information see https://www.gov.uk/government/publications/changes-to-rebated-fuels-entitlement-from-1-april-2022

  • Plant hire companies can fill/re-fill their machinery with red diesel up to and including the 31st March.
  • Any red diesel within the machine’s fuel tank from 1st April, which had been filled on or before 31st March is allowed to be used.
  • From the 1st April, the Hirer must comply with the hire company’s requirement on the type of fuel which can be used to fill/re-fill the machine during the hire period.
  • If the Hirer uses any fuel in the machine, other than that specified by the Owner, the Hirer is liable for all remedial costs in rectifying this.
  • The hirer may also be liable to HM Revenue and Customs for breaches of the new regulations concerning use of red diesel.
  • The Hirer should run down stocks of red diesel on any construction site before 31st March. Your fuel supplier can help advise on this.
  • If there is any uncertainty on the Hirer’s obligations in connection with red diesel usage during the period leading up to the fuel switchover, and immediately afterwards, then they should contact HMRC for specific advice using the email address – reddieselentitlement@hmrc.gov.uk