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Revenue and Customs Brief 38/07

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HM Revenue and Customs -Tax Authorities

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Issued 3 May 2007

Relaxation of the Registered Dealers in Controlled Oil scheme (RDCO)

Revenue and Customs Brief 03/07, issued on the 23rd January 2007, invited views on proposals to reduce the burdens of the RDCO scheme for those supplying low annual volumes of rebated fuel. Following this informal consultation, as announced in the Budget, we can confirm that we will be introducing the proposed changes, with effect from January 2008.

We proposed:

  • compliant businesses, who are supplying product fewer than 10,000 litres per year, would only be required to submit an annual consolidated return rather than monthly returns;
  • de -registration of some businesses that have been making nil returns over an extended period.

Consultation responses

We would like to thank those who took time to respond. The majority of responses were positive and welcomed the proposals. Some respondents thought that the proposed de minimis level is not high enough. Although we are keen to reduce administrative burdens on the trade, we have to balance these objectives with a need to continue to effectively control movements of controlled oils in accordance with the UK Oils Strategy. The de minimis level of 10,000 litres was arrived at as the result of a detailed analysis of the scheme undertaken by departmental analysts.

We have already made a commitment to undertake a further review of the RDCO scheme. We will, continue monitoring the operation of the scheme and will consider the possibility of further increases to the de minimis limit.

What happens next?

Businesses who wish to change to annual returns will be advised, in a later brief, when and how to apply.

Businesses who have submitted nil returns over an extended period will be approached to establish whether they need to remain registered under the scheme.

We will also update Notice 192. The current version may be seen on our website within the Leaflets and Booklets/Excise/Oils section.


About the Author

Crown Copyright 2007.

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 Tax briefs are updated regularly and may be out of date at time of reading.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 2007-05-03 14:00:22 in Tax Articles

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