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HM Revenue and Customs Brief 3/15 - Rural Fuel Duty relief scheme


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Published 5 March 2015

Purpose of this Brief

This brief gives information about a new Rural Fuel Duty relief scheme for retailers and consumers of unleaded petrol and diesel for use as road fuel within the following areas:

The postcode districts of EX35, LA17, NE48, IV14, IV21, IV22, IV26, IV27, IV54, KW12, PA38, PA80, PH19, PH23, PH36, PH41 and the post town of Hawes (in North Yorkshire).

The brief also sets out the policy relating to when HM Revenue and Customs (HMRC)will process claims that are submitted late. This section of the brief applies to new claimants, and existing claimants in Inner and Outer Hebrides, the Northern Isles, the Islands in the Clyde and the Isles of Scilly.

2. Who needs to read this?

Retailers of unleaded petrol and diesel sold as road fuel within the areas listed above.

3. Background

At Autumn Statement 2012, the government announced its intention to consider whether to apply to the EU for an extension of the current rebate scheme to other areas of the UK with similar cost characteristics to the Scottish islands.

To support this work and to ensure that the government had the best possible pump price data on the UK’s retail fuels market in remote rural areas, the government carried out two public calls for information in 2013.

On the basis of the information collected, as well as data previously held by HMRC, the government submitted a formal request to the European Commission for a derogation from the EU Energy Products Directive to allow it to implement the 5 ppl reduction in fuel duty.

A Council Decision on 2 March allowed a derogation from the Energy Products Directive 2003/96) in order to introduce the scheme. The rebate will provide a 5 ppl reduction on the standard UK rate of excise duty.

4. Who is eligible to claim relief?

You can claim relief if you are a retailer of road fuel (unleaded petrol and diesel) within the areas specified above.

5. How does the relief scheme work?

If you are a retailer of road fuel within the areas concerned you can register with HMRC to claim 5 ppl relief on fuel you purchase on or after 1 April 2015 for onward retail sale. You will need to be registered by 1 April 2015 to make a claim on 1 April 2015. You can make claims on a monthly basis.

You will have 60 days following your registration to reduce the cost of every litre of road fuel sold by the equivalent amount of the relief claimed. This is so that all consumers in the areas concerned benefit from the reduction in fuel duty.

The 60 day period during which retailers are not required to pass on the relief is designed to help avoid initial cash flow problems. By law, retailers are required to pass on the full relief to consumers once this initial 60 day period has come to an end. Retailers can begin to pass on the relief to consumers before the 60 days are over, should they so wish.

6. How do I register?

To register you need to complete form HO80: Registration to claim fuel duty relief.

The form can be completed electronically but must be printed and returned by post to:

HM Revenue and Customs
Mineral Oils Relief Centre
Benton Park View

You can also call the Excise and Customs Helpline Telephone: 03000 2003700 and ask them to send a form for you to complete and return.

A separate registration is needed for each retail premises.

HMRC will write to confirm that you are registered as a qualified claimant.

7. How do I claim the relief after I have registered?

To claim the relief you need to complete form HO81.

Claim for duty relief which will be available on GOV.UK. The form can be also completed electronically. You can only submit 1 claim per month. HMRC will pay the relief claimed within 30 days of receiving the claim. Your claim must be made within 30 days of the end of the month to which it relates, (unless for reasonable cause, the Commissioners accept a late claim) a claim will not be paid if it is received after that date.

8. What information will be required on the claim form?

You will need to provide the following details of the fuel you have purchased and on which you are claiming relief:

  • the date of the purchase
  • the name of the supplier
  • period of claim
  • the reference of the purchase, such as invoice number
  • total volume in litres of unleaded petrol purchased in the period
  • total volume in litres of diesel purchased in the period
  • the amount of the claim

9. How is the relief calculated?

The amount you can claim is:

  • the volume in litres of unleaded petrol you purchased × 5 pence = A
  • the volume in litres of diesel you purchased × 5 pence = B

Add A and B together to work out the total amount of your claim.

10. What records must I keep?

You must keep evidence of all your purchases, such as invoices of road fuel on which your relief has been claimed. You will also need to keep your normal business records and produce them to HMRC if asked to do so.

11. Do I need to submit evidence for my relief claim with my return?

No. Please keep your documentary evidence as part of your records. HMRC will contact you if they wish to verify your claim.

12. Under what circumstances would HMRC accept claims that are submitted later than 30 days after the end of the month to which it relates?

We would accept claims if for example:

  • there has been a bereavement in the family
  • you had an unexpected stay in hospital that prevented you from sending your claim form
  • your computer or software failed just before or while you were preparing your claim
  • a fire prevented you from completing your claim
  • postal delays that you couldn’t have predicted

You must try to send your return or payment as soon as possible after your reasonable excuse is resolved.

13. How long will the relief scheme last? Will you monitor the relief scheme to ensure it is working effectively?

The relief scheme will be evaluated over a period of time to ensure that it is working effectively and that the price of fuel in the areas concerned has reduced.

About the Author

© Crown Copyright 2015.

A licence is needed to reproduce this article and has been republished for educational / informational purposes only. Article reproduced by permission of HM Revenue & Customs.

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Article Published/Sorted/Amended on Scopulus 2015-03-26 15:23:27 in Tax Articles

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