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HM Revenue and Customs Brief 11/08


HM Revenue and Customs -Tax Authorities

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Issued 13 February 2008

Issue of revised Public Notice 179E Biofuels and other fuel substitutes

In March, we will be publishing an updated version of Notice 179E: Biofuels and other fuel substitutes. The revised notice will include the simplification measures effective from 30 June 2007, which were announced and described in Revenue & Customs Briefs 37/07 and 43/07. This brief summarises the simplification changes and provides guidance about the way the new registration threshold operates.

Producers, distributors and users of biofuels and/or fuel substitutes should check our website at for the latest edition of the notice and refer to the What’s new section for updates.

The main changes from last year’s simplification measures are summarised below as follows:

Exempt producers/users

If you have produced or used less than 2,500 litres of:

  • any biofuel
  • any other fuel substitute or additive

within the last 12 months, and expect to produce or use less than 2,500 litres in the next 12 months, you are an exempt producer and do not need to register with us and account for duty.

Production includes the manufacture or processing of road fuel, and the setting aside of any product that has not been charged with duty – such as vegetable oil - with the intention of using it as road fuel.

Please note that producers of 2,500 litres or more are not entitled to an allowance of 2,500 litres before they start accounting for duty.

Large producers

If you have produced 450,000 litres or more of:

  • any biofuel
  • any other fuel substitute or additive

within the last 12 months, and expect to do so in the next 12 months, you are a large producer. We will notify you that you are a large producer and send you monthly returns.

Producers sharing premises and equipment

If you share premises and equipment with other producers, you are treated as a group. A group can only be an exempt producer if the total production of its members is less than 2,500 litres in the last 12 months, or if they expect the total production to be less than 2,500 litres in the next 12 months. If the group does not qualify as an exempt producer all members must register their premises individually or collectively and account for duty on the total amount of fuel produced.

Can vegetable oil be used or sold as motor fuel free of excise duty?

Vegetable oil - unused and used, processed or unprocessed - that is set-aside or intended for use as motor fuel is liable to duty unless the producer is exempt.

Vegetable oil producers and retailers who make and supply their oils for food production are not liable to register and account for duty on their sales even when the oil is subsequently used as motor fuel. Vegetable oil producers and retailers who supply direct to fuel producers and distributors are not liable for duty unless they have set aside all or part of their production for motor fuel.

Excise Payment Security System (EPSS)

The updated Notice 179E will also give details about EPSS, which came into effect on 1 February 2007. It replaced the previous excise duty deferment guarantee system. Further information about EPSS can be found on our website.

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 2008-02-29 00:25:46 in Tax Articles

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