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Revenue and Customs Brief 43/07


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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 quarterly.

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.

Further guidance

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 in conflict.

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 2007-06-11 21:29:40 in Tax Articles

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