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
2. Who needs to read
Retailers of unleaded petrol and diesel sold as road fuel
within the areas listed above.
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
4. Who is eligible to
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
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
A separate registration is needed for each retail premises.
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
- total volume in litres of diesel purchased in the period
- the amount of the claim
9. How is the relief
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
10. What records must I
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
11. Do I need to submit
evidence for my relief claim with my return?
No. Please keep your documentary evidence as part of your
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
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