It will no longer be legal to use red diesel in plant and machinery being used for construction work from April 2022.
Kevin Minton, Chief Executive of the CPA said: "We urge all construction plant owners and their clients and customers to make sure they are up-to-date with the forthcoming changes and what it means for how they operate their plant. This applies as much to those companies looking to hire plant as it does to those supplying it. In conjunction with our colleagues at HMRC, we have produced a recently updated guide and set of FAQs that we encourage everyone within and connected to the plant-hire industry, to look at."
The CPA states that the main points to note and follow are:
1. Plant-hire companies who operate plant and machinery in construction that use red diesel must fill tanks with white diesel or duty paid biofuels (e.g. HVO fuel) from 1st April 2022.
2. Companies can continue to operate plant with any red diesel that is already in a vehicle or machine's engine from 1st April 2022, but they will not be allowed to refill fuel tanks with red diesel from this date onwards.
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3. Red diesel can continue to be used by operators for plant and machinery that is hired out to clients if it is being used solely for agricultural or forestry purposes, but the fuel tanks must be drained and replaced with white diesel ahead of the machinery being hired out to a construction client.
4. Operators are not expected to flush out fuel tanks of red diesel in advance of 1st April 2022, but they will be expected to make sure that any excess fuel they have in storage tanks is disposed of properly. Suppliers can sell or give their excess fuel to someone still entitled to use it or sell it to an oils dealer or dispose of it through waste oil or disposal companies.
5. We advise CPA members to work closely with their existing fuel suppliers to ensure both sides are aware of the changes and the procedures to follow. Fuel suppliers are being contacted by HMRC to ensure they are following the new regulations.
6. We urge CPA members in the weeks leading up to 1st April 2022, to run down stocks and keep records/receipts of orders of deliveries and supplies of red diesel, along with records for when and how much red diesel, has been added to engines. In addition, we advise members to make sure they have full records for what activity the machinery and plant has been hired out for i.e. is it being used for construction, agriculture, or forestry purposes.
7. We advise members to review existing security arrangements, whether in depot sites or working with clients when equipment is on site, to deter the theft of white diesel.
8. Raise awareness amongst staff and clients of the changes that come into effect and what procedures they must follow both ahead of the 1st April 2022 deadline and thereafter.
9. The new rules apply to any type of vehicle that currently runs on red diesel or rebated biodiesels - including what is termed a 'special vehicle'. If the machine is working in construction related activity, red diesel cannot be put the fuel tank from 1st April 2022.
Kevin Minton added: "Over the course of the last few months, we have been working closely with HMRC to make sure CPA members receive the latest and most up-to-date information on what the red diesel rule changes mean. We have hosted two webinars in conjunction with HMRC for CPA members, and we will be hosting another on 17th March 2022 with our colleagues from HMRC. This will allow CPA members to put their questions directly to the Red Diesel Policy Team."
