Revenue and Customs Brief 43/07
Submit Articles Back to Articles
Issued 11 June 2007
Follow up to Revenue & Customs Brief 37/07 on Biofuels Simplification
- Revenue & Customs Brief 37/07
issued on 19 April 2007 confirmed that the following changes applying to
biofuel producers were to be introduced:
- A production threshold of 2,500 litres per annum below which producers
will not need to enter premises, submit returns or pay duty, and
- A reduction in the frequency of returns for all but the largest producers
(defined as those producing over 450,000 litres per annum) from monthly to
We can now confirm that these measures will be introduced on 30 June 2007.
What will small producers have to do?
All registered producers are being sent a return as usual for the month of
June. Those we think likely to be below the production threshold over the next
12 months are receiving a letter with this return. The letter asks them to
declare whether they expect to produce more or less than 2,500 litres in the
coming year. They should complete the declaration at the foot of the letter and
send it back along with their completed return by the due date.
Those who declare that they expect to produce less will be deregistered and
will not receive any further returns. We will refer to producers operating below
the threshold as “exempt” producers. They must, however, contact us to
enter their premises if they subsequently exceed 2,500 litres in a 12 month
period, or if, at any time, they expect to exceed this amount within the next 12
months. Exempt producers are also required to keep simple production
records (date of production and quantity produced, in litres) on an ongoing
basis, and retain these for six years. Production levels should be checked at
the end of each month. If they find that they need to enter their premises, they
should contact the HMRC National Advice Service on 0845 010 9000.
Those who declare that they expect to produce more than 2,500 litres over the
next 12 months will remain registered and will receive quarterly returns, the
first one being for the quarter 1 July to 30 September 2007.
Subsequent quarterly returns will be issued for the periods 1 October to 31
December; 1 January to 31 March and 1 April to 30 June. Returns will be issued
and should be received in the last month of the quarter (September, December,
March and June) for completion and payment by the due dates, which will be no
later than the fifteenth day (or the last business day before the fifteenth day)
of October, January, April and July.
Queries should be directed to the National Advice Service (NAS) on 0845 010
9000, quoting the number of this Brief.
What will medium-sized producers have to do?
Producers of between 2,500 and 450,000 litres per annum should complete their
return for the period ending 30 June as normal. The next return they receive
will be for the period from 1 July to 30 September.
A medium-sized producer who expects to produce less than 2,500 litres in the
next twelve months should contact the NAS at the number above and we will
arrange for them to be deregistered. Medium-sized producers who become large
producers, due to an increase in production, will be contacted by HMRC to
arrange for their transfer from quarterly to monthly returns.
What will large producers have to do?
Producers of over 450,000 litres per annum will remain on monthly returns. A
large producer who has produced less than this amount in the last twelve months,
and who expects to produce less than this amount in the next twelve months,
should write in with details to HM Revenue and Customs, Mineral Oil Relief
Centre, Dobson House, Regent Centre, Newcastle NE3 3PF.
We will update
Public Notice 179E: Biofuels and other fuel substitutes to reflect the
changes outlined in this Brief as soon as possible. Until then, please treat
this Brief as superseding the current edition of this Notice where the two are
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.
Follow us @Scopulus_News
Article Published/Sorted/Amended on Scopulus 2007-06-11 21:29:40 in Tax Articles