The Ulster Farmers’ Union (UFU) wish to remind members that on Friday 1 April the entitlement to use red diesel changed. Red diesel can continue to be used in vehicles and machinery used in agriculture, horticulture, fish farming and forestry. This includes allowing vehicles used for agriculture to be used for cutting verges and hedges, snow clearance and gritting roads. Farmers and contractors can purchase and use red diesel as they always have done to complete jobs related to agricultural. Activities accepted as falling within the definition of agriculture, horticulture or forestry include the:
- Breeding or rearing of any creature kept for the production of food, wool, skin or fur, or for the purpose of its use in the farming of land
- Growing or harvesting of crops including cereals, combinable crops, roots, tubers, vegetables, pulses, fruit, nuts, grasses, oilseeds and fungi for food, beverages, fodder, fuel or industrial purposes
- Growing or harvesting of flowering or ornamental plants
- Growing or harvesting of timber or other forestry products
- Upkeep of agricultural land such as set aside under environmental management schemes
The legislation changes will primarily affect those using red diesel for jobs that are on the periphery of agriculture. If switching between allowed and non-allowed uses, HMRC advise thoroughly draining tanks then flushing out with white diesel to remove all traces of red or have designated vehicles for red and white diesel. When flushing tanks, it’s important to retain documentation to show when a vehicle was filled with red diesel, when it was flushed out, when the vehicle is refilled with full duty paid fuel and that the vehicle has previously been used for allowed purposes (such as invoices from jobs).
As the use of red diesel is not changing for farmers, the UFU expect HMRC to be focused on enforcing criminal evasion and be looking for uses of red diesel in non-allowed operations and industry where the entitlement has been totally removed. As some industries lose the entitlement to use red diesel farmers can expect to see an increase in the cost of inputs such a quarry products and contracting costs.
