HM Revenue and Customs Brief 68/08
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Issued 31 December 2008
Energy Products Directive: Expiry of the derogations allowing reduced rate
duty on fuel in private pleasure craft - RDCO registration
Purpose of this brief
This brief supplements Revenue & Customs Brief 49/08. Its purpose is to
inform Registered Dealers in Controlled Oils (RDCOs) who supply red diesel
and/or bioblend for use in private pleasure craft how to register for the new
This brief also provides a reminder of duty rate changes which took effect at
the Pre-Budget Report (PBR) 2008.
With effect from 1 November 2008, suppliers of red diesel to private pleasure
craft have been required to charge the purchaser the full rate of duty on fuel
used for propulsion and pay the duty to HM Revenue & Customs.
RDCOs are required to notify us that they are making supplies of this kind,
so that we can issue you with your first duty return in autumn 2009.
Not all RDCOs supply fuel for use by private pleasure craft, but if you do,
or may do so in the foreseeable future, you must notify us as follows. Failure
to notify us may render you liable to a civil penalty.
You can notify us by email or by letter and should provide the following
information, to allow us to modify your existing RDCO registration details and
issue you with a duty return:
- RDCO registration number
- name and address of the registered business
- contact telephone number
To notify us by email, please title your email ‘RDCO Pleasure Craft
Alternatively, you can write to us at:
RDCO Pleasure Craft Notification
HM Revenue & Customs
100 Parliament Street
Please note, these contact addresses are to be used for the sole purpose of
the RDCO notification exercise, so please do not send any other correspondence
to them (it will not be answered or redirected).
We will send you confirmation of receipt of your notification and, in due
course, you will be issued with a revised RDCO certificate which will show you
are registered for the new scheme.
Issue of first duty return
You will be sent a new payment return, separate from and additional to, your
usual RDCO return showing your RDCO number, on which you will declare the total
amount of duty due and sign and date it. The first return and payment by all
registered suppliers will cover the 12 month period from 1 November 2008 to 31
October 2009, and you will have a further 21 days to submit the return and
payment. We will send you the return in advance of 31 October 2009.
Reminder of PBR duty rate changes
As part of his recent PBR, the Chancellor announced that the full rate of
duty for heavy oil would rise from 50.35 pence per litre (ppl) to 52.35 ppl, and
the rebated rate applicable to red diesel from 9.69 ppl to 10.07 ppl with effect
from 1 December 2008.
We appreciate that RDCOs are still familiarising themselves with the new duty
arrangements for private pleasure craft and that the recent duty rate change
followed very quickly after the scheme’s introduction. This will be taken into
consideration during any future assurance checks.
RDCOs operating the new scheme should note their responsibility to identify and
apply any future changes from their effective date. Duty rate changes are
usually announced as part of the Chancellor’s PBR and Budget. Details of duty
rates can be found on our website or are available from the National Advice
Service (NAS) on Tel 0845 010 9000.
Public notice update
The new public notice, covering the use of red diesel for pleasure boating
and Aviation turbine fuel (Avtur) for private pleasure flying, should be
available in the new year.
If you have any queries please contact the NAS.
About the Author
© Crown Copyright 2008.
A licence is need to reproduce this article and has been republished for
educational / informational purposes only. Article reproduced by permission of
HM Revenue & Customs under the terms of a Click-Use Licence. Tax briefs are
updated regularly and may be out of date at time of reading.
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Article Published/Sorted/Amended on Scopulus 2009-01-02 23:03:18 in Tax Articles