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Where Taxpayers and Advisers Meet
HMRC Says Farmers can Use Low-Duty Red Diesel to Help Out Clearing Public Roads
06/12/2010, by Lee Sharpe, Tax News - HMRC Administration, Practice and Methods
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HM Revenue & Customs has announced that farmers will be permitted to use 'Red Diesel' (Rebated Heavy Oil) on public roads, when helping to grit or clear roads in rural areas during the current period of extremely cold weather.

Although chemically similar to normal diesel, red diesel is much cheaper than standard forecourt diesel because it has significantly lower fuel duties charged per litre - and has a special red dye added to it as a visual indicator that it has suffered lower taxes. Whilst farmers are allowed to use red diesel for normal agricultural work, there are normally severe penalties if HMRC finds a vehicle using red diesel on public roads (e.g., the vehicle may be seized).

However, in recognition of the vital role farmers carry out in helping to keep rural roads clear, HMRC will be adopting a 'pragmatic approach' where tractors and the like use red diesel in the cold weather, and suggest ringing the National Helpline on 0845 010 9000 for further details.

About The Author

Lee is TaxationWeb's Articles & News Editor and writes for TaxationWeb. He is a Chartered Tax Adviser with experience of advising individuals and owner-managed businesses over a broad spectrum of tax matters.
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