CPA Urges Wider Industry to Be Prepared for Red Diesel Changes

With one month to go before the rules change relating to the use of red diesel and rebated biodiesel in construction plant machinery, the Construction Plant-hire Association (CPA) is urging the wider industry to be fully prepared for the changes that come into effect from 1st April 2022.

After this date, red diesel can continue to be used for plant and machinery that is being used solely for agricultural or forestry purposes, but it will no longer be legal to use red diesel in plant and machinery being used for construction related activities from April 2022. Instead, fuel tanks must be filled with white diesel or duty paid biofuels such as HVO fuel if equipment is being used for construction work.

Kevin Minton, Chief Executive of the CPA said: “Even though these rules directly affect the construction plant sector, it’s important that non-construction clients, such as agriculture, forestry and local authorities, are up-to-date with the forthcoming changes, as it may affect how they operate their plant. This applies to plant and machinery owners, those organisations looking to hire plant and those supplying it.

“In conjunction with our colleagues at HMRC, we have produced a recently updated guide and set of FAQs that we encourage everyone to look at.”

The CPA states that the main points to note and follow are:

  1. Plant-hire companies who operate plant and machinery (for construction activities) that use red diesel must fill tanks with white diesel or duty paid biofuels (e.g. HVO fuel) from 1stApril 2022.
  2. Companies carrying out construction related activities can continue to operate plant with any red diesel that is already in a vehicle or machine’s engine from 1st April 2022, but they will not be allowed to refill fuel tanks with red diesel from this date onwards.
  3. Red diesel can continue to be used by operators for plant and machinery that is hired out to clients if it is being used solely for agricultural or forestry purposes, but the fuel tanks must be drained and replaced with white diesel ahead of the machinery being hired out to a construction client.
  4. Operators carrying out construction related activities are not expected to flush out fuel tanks of red diesel in advance of 1st April 2022, but they will be expected to make sure that any excess fuel they have in storage tanks is disposed of properly. Suppliers can sell or give their excess fuel to someone still entitled to use it or sell it to an oils dealer or dispose of it through waste oil or disposal companies.
  5. We advise CPA members to work closely with their existing fuel suppliers to ensure both sides are aware of the changes and the procedures to follow. Fuel suppliers are being contacted by HMRC to ensure they are following the new regulations.
  6. We urge CPA members in the weeks leading up to 1st April 2022, to run down stocks and keep records/receipts of orders of deliveries and supplies of red diesel, along with records for when and how much red diesel, has been added to engines. In addition, we advise members to make sure they have full records for what activity the machinery and plant has been hired out for i.e. is it being used for construction, agriculture, or forestry purposes.
  7. We advise members to review existing security arrangements, whether in depot sites or working with clients when equipment is on site, to deter the theft of white diesel.
  8. Raise awareness amongst staff and clients of the changes that come into effect and what procedures they must follow both ahead of the 1st April 2022 deadline and thereafter.
  9. The new rules apply to any type of vehicle that currently runs on red diesel or rebated biodiesels – including what is termed a ‘special vehicle’. If the machine is working in construction related activity, red diesel cannot be put the fuel tank from 1st April 2022.

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Kevin Minton added:“Over the course of the last few months, we have been working closely with HMRC to make sure CPA members receive the latest and most up-to-date information on what the red diesel rule changes mean. We have hosted two webinars in conjunction with HMRC for CPA members, and we will be hosting another on 17th March 2022 with our colleagues from HMRC. This will allow CPA members to put their questions directly to the Red Diesel Policy Team.”

Recordings of the first two red diesel webinars can be viewed on the CPA website at https://www.cpa.uk.net/events/cpa-webinar-programme. The latest red diesel guidance from the CPA can also be downloaded from https://www.cpa.uk.net/news/cpa-publishes-revised-red-diesel-guidance

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