If you see someone using red diesel on public roadways, report them to HM Revenue & Customs (HMRC).
Is it true that red diesel shows up on a MOT?
This could be a genuine issue if you have purchased a car that you suspect has previously used red diesel, or if you have ever mistakenly used it.
Although garages will not expressly check for red diesel, it is difficult to miss. A professional garage will be well-versed in the color of ordinary diesel, and if they suspect you of using red diesel, they will almost certainly report you to HMRC.
If you have any worries about whether your car has any red diesel residue from anything, talk to your local mechanic about changing your fuel tank or your car!
What is the penalty for using red diesel in the United Kingdom?
The HMRC will charge you for the restoration of your vehicle’s system to clean your tank and filters to remove the marker dye if you’re caught using it illegally. For its removal, you will be charged a price. Your vehicle may be impounded, or you may be paid back for the cost difference between red diesel and road diesel for the time you’ve been driving it.
Is red diesel prohibited in the United Kingdom?
Filling a vehicle with red diesel with the goal of driving on public roads is illegal in the vast majority of circumstances. If caught, this is deemed tax evasion, and penalties and fines will be enforced.
On the gov.uk website, you can learn about the offences and penalties levied by HMRC for using red fuel.
Farmers can use red diesel to travel between various plots of land as long as they are both owned by the same individual/business, up to a maximum distance of 1.5 kilometers, at the time of writing. There are few exclusions for cars that use red diesel for agriculture or forestry.
Is using red diesel against the law?
Why is it unlawful to use red diesel? Because it has a reduced fuel duty, red diesel is unlawful because it is not approved for use on public roadways. As a result, using red diesel on a public road is deemed tax avoidance, and is thus prohibited.
Does red fuel discolor your tank in the United Kingdom?
No, your truck will be alright on this diesel. The main variation is in color, not in the components. It’s strictly for off-road use, as indicated by the red colour. It’s coloured red to make it visible to government officers if you’re using it illegally. Be advised that if you’re discovered driving on US highways, you could face a ticket and a hefty fine.
Off-road diesel will run your automobile if it runs on diesel. However, as previously said, if you use it illegally and are detected, you will be penalized by both the state and federal governments. Because that is sometimes the only fuel available in the event of a natural disaster, you are unlikely to be penalized.
Technically, you can, because the color is the only difference. We’ve heard of cases where someone bought a truck that ran on off-road diesel and then switched to regular diesel. In that scenario, the new owner just switched to regular diesel and the vehicle performed admirably.
The distinguishing red dye is the most noticeable variation, and there may also be a difference in sulfur levels. Furthermore, because this farm fuel is designed for heavy machinery, it heats up quickly.
Driving until the tank is completely empty is the simplest way to get rid of the red dye. Then pour in a couple gallons of or normal diesel and let it run for a while. Repeat this process numerous times. If you want to be sure it’s gone, have your mechanic flush the gasoline system.
No, it isn’t possible. Except for the colour, it’s identical as on-road diesel. If you have a diesel engine, you can use farm fuel to power it. Just make sure you’re not breaking any laws when you use it.
Some people believe it is “tax-free,” yet depending on the state, it may still be subject to taxation. Here’s a list of states with information on gasoline tax exemptions. When you’re permitted to use this type of fuel off-road, you’ll either pay less at the pump or get a refund on your fuel tax.
You could be charged with “Motor Fuel Tax Evasion” if you’re caught and convicted. Is it really worth it to save money on gas? Here’s what the IRS has to say about it:
“What are the Consequences?” In general, no coloured fuel should be used in highway vehicles. The Internal Revenue Code stipulates a penalty of $1,000 or $10 per gallon, whichever is larger, with payment of the tax for each violation. Additional fines may be imposed by states.
Mixing the two types of diesel fuels is not a problem, however red diesel has a higher sulfur level than green. It’s also known as green fuel because it’s environmentally beneficial. It’s either light green or transparent in appearance.
This is subject to change. If you’re unsure, you can dip a tube in your tank and pull out a sample to see what color it is; there are also manual dipstick kits and black lights available. However, the gas does not remain in your tank; it passes through your fuel system. If you’re worried, take it to your mechanic to have the system flushed.
What happens if you’re caught driving around with red diesel in your car?
If you’re detected using red fuel illegally, the authorities may take your vehicle, and you’ll have to pay a charge to have it released, as well as the amount owed in duty. Serious offenses could result in an infinite fine and a two-year prison sentence for the operator.
Is it still possible for farmers to use red diesel?
It is critical to confirm that the vehicle you wish to utilize is permitted to use red once a legitimate use has been confirmed.
Agricultural, special, and unlicensed vehicles, as well as some devices and appliances, will be allowed to use red.
It’s worth emphasizing that, beginning of April 1, they must only be carrying out a sanctioned operation, rather than just operating off-road, as is the case now.
The HMRC’s Excise Notice 75, Memorandum of Agreement, is a useful reference point for determining whether something has an agricultural purpose (MoA).
This will be revised before April 1st, but the definitions are unlikely to change. The definition of an approved vehicle or machine will also be modified in Notice 75.
HMRC has recently provided interim guidance on these changes in the meantime, until Notice 75 is updated: From April 1, 2022, there will be changes to the rebated fuels entitlement.
What defines “agricultural use?
Agricultural use is just doing work for the benefit of agriculture.
HMRC accepts the following activities as part of the concept of agriculture:
- Breeding or rearing any creature kept for the purpose of producing food, wool, skin, or fur, or for use in land farming
- Crops such as cereals, combinable crops, roots, tubers, vegetables, pulses, fruit, nuts, grasses, oilseeds, and fungi, as well as the upkeep of agricultural land such as set-aside under environmental management schemes, are grown or harvested for food, beverages, fodder, fuel, or industrial purposes.
The following activities are not considered to be part of agriculture:
- Breeding, rearing, or keeping any creature for the sake of sport or amusement is prohibited.
- Agricultural products trading
- Extraction of peat or loam
- Taking use of wild animal or fish stocks
- Construction of buildings or other structures utilized for agricultural purposes
- Transportation of agricultural produce, livestock, implements, inputs, or waste, unless it is incidental to an agricultural operation on the ground.
Can an agricultural contractor use rebated fuel?
Contractors can continue to use red diesel for driving to and from the farm, carrying materials or equipment needed for the project, and eliminating waste resulting from the contracted work as long as they are using an approved vehicle or machine for an allowed purpose.
Can a self-employed contractor with a tractor and trailer use red diesel if employed by another contractor as part of the harvesting team?
Yes, because the contractor would be a member of the harvest team, collecting the produce from the field. This is an off-road job that could not be done by an HGV as part of the agricultural operation.
Can I use dual tanks if I do some agricultural and non-agricultural work?
No, because utilizing duplicate tanks inhibits HMRC from conducting effective compliance inspections, this is now unlawful and will remain so from April 1.
I have heard that I can use red all the time, then if I do any non-agricultural work I can just pay back the tax. Is this true?
No. HMRC has made it plain that using rebated fuel for a non-allowed purpose is illegal, and if you are caught doing so, you may face prosecution and your car or machine may be seized.
When engaging in non-allowed activities, you must use completely duty-paid fuel, such as white diesel.
The only exemption is in the case of national security, law enforcement, or human or animal welfare, where HMRC may provide a license to use rebated gasoline if it is required to sustain a vital or critical function.
I have a digger that switches between agricultural and non-agricultural jobs regularlywhat should I do?
The most practical alternatives, according to HMRC, are to either run all cars on white diesel all of the time or to have designated vehicles for authorized and non-allowed purposes.
However, many contractors and farmers recognize that this is just not feasible, especially given the rising cost of machinery.
When transitioning between approved and prohibited usage, it is critical to drain the tank completely and clean it with white diesel to remove any traces of red.
When doing so, save all paperwork to demonstrate:
- When red diesel was used to fill a vehicle or machine.
- It was flushed out after that.
- When it was replenished with duty-free gasoline,
- That the vehicle or machine has been utilized for legal reasons in the past (such as invoices from jobs).
However, none of the aforementioned documentation guarantees that the vehicle will not be seized if investigators detect traces of red in a tank of white diesel being used for an unapproved purpose.
We anticipate HMRC focusing on criminal evasion and looking for red diesel use in non-allowed businesses.
I am currently using my agricultural tractor for construction work. In the future, will I have to switch my vehicles used on construction sites to white diesel?
Yes, and it will be critical to make sure that customers who have access to red for off-road use are informed of the changes.
When pricing for new works, include the cost of using white fuel and make sure consumers understand that using red diesel on construction sites, especially when off-road, is banned.
Golf courses and community amateur sports clubs (CASCs) can use red in their own vehicles after 1 April 2022. Can a contractor use red diesel when carrying out work on a golf course/CASC?
On golf courses and by CASCs in tractors that are only utilized on-site, red diesel can be used. Red diesel may be used in such circumstances by special vehicles such as mowers and diggers, both when they are kept on site and when they travel to and from site.
On playing fields and sports facilities that are not managed by a club that is registered with HMRC as a CASC, red diesel cannot be used.
Can I use red diesel if providing services to a domestic/private garden?
It depends on the service provided and whether it is classified as horticultural use under HMRC’s MoA.
This includes “gardening cultivation and management” (including vegetable plots, allotments and market gardens, but also flowerbeds, trees, shrubberies and ornamental lawns in public parks).
Landscaping and tree surgery do not match the definition, hence white diesel is required.
However, in order to be eligible for rebated fuel, you must be working with an approved vehicle or machine.
Will I be able to use red diesel in my unlicensed equipment (such as a drainage trencher/digger) when engaged in agricultural land drainage contracting?
All of these vehicles are permitted to operate as special vehicles, and they are permitted to use red when carrying out agricultural drainage.
To be recognised as an agricultural activity, the job must be for the benefit of the agricultural land.
Work involved in placing drainage or utilities such as telephone or electricity cables across agricultural land (including repairing the land afterwards) or maintaining them is not considered agricultural.
Can red diesel be used to harvest crops being delivered to an anaerobic digestion plant?
You can utilize red diesel if you’re involved in the major agricultural operation of harvesting crops. It must be fully duty-paid white diesel if you are solely engaged in transport.
What are the rules of hedge and verge cutting, gritting and snow clearance?
Agricultural vehicles, as described in HMRC’s Excise Notice 75, can use rebated fuel to cut verges and hedges on roadsides, clear snow, grit, and clean up after flooding after 1 April.
Can I grit on public car parks and private land?
For removing or otherwise dealing with frost, ice, snow, or flooding, an agricultural vehicle will be authorized to utilize rebated fuel.
Highways, agricultural land, and private property are all included (such as car parks). The tractor can also use red diesel to get to and from the gritting task on the road.
I make straw bales and then move them to a store. After that I need to move them to a customer. Is this OK?
You can use red diesel if you’re directly involved in an agricultural operation (such as baling). If you’re merely moving hay or straw, though, you’ll need to use fully duty-paid white diesel.
Unless you were involved in the baling, the second haulage travel from the shop to a client must be done on white diesel.
Can I transport and spread compost to agricultural land?
Composting for soil enrichment is an agricultural benefit. So, if you’re hired to provide the necessary machinery and distribute the compost, you can transport the agricultural input on red because it’s a byproduct of the agricultural process.
How will it work if I hire out machinery for agricultural and non-agricultural use?
The same rules apply when renting out vehicles, machinery, or appliances that are utilized for both permitted and prohibited uses. The rental firm will have to do one of two things:
- For all purposes, use white diesel in all cars and devices.
- Have specific red diesel-powered cars and machines that are exclusively utilized for permitted reasons.
- When switching between usage, flush the fuel tank with white diesel to remove all remnants of rebated fuel.
It will be up to the business to govern how it regulates the type of gasoline that its consumers use.
If they allow customers to use rebated gasoline in their vehicles, equipment, or appliances for qualifying reasons, they must ensure that the machinery is not using rebated fuel when it is utilized for a non-entitled use to prevent seizure.
Can a contractor drill game cover on red diesel?
Drilling and maintaining environmental strips would be classified as agricultural since they promote biodiversity on fields by increasing natural predators, which reduces the need for pesticides.
This is in line with the organization’s stated mission “Agricultural land maintenance, such as set-asides under environmental management plans.
However, if a game cover is used for a commercial shoot, it is classified as “breeding, rearing, or keeping any species purely for the purpose of sport or amusement, which necessitates the use of white diesel.
Also, if the environmental strip was entirely or mostly used to protect against flooding, this would be a prohibited use, and you would have to drill and maintain it with white diesel.
Can I make hay on a horse paddock on red diesel?
Yes, because this is an agricultural business and the contractor has no influence over the end usage.
In terms of fuel use, however, equestrian and horse yards are classified as recreation, not agriculture, and all work done in and around the stables and yard must be done with completely duty-paid white diesel.
Is red diesel still legal after April 2022?
Many off-road vehicles and equipment users that use red diesel (also known as rebated fuel) will lose their entitlement on April 1, 2022, and will have to switch to white diesel.
What happens if you’re found using off-road diesel in your vehicle?
Simply flashing a flashlight or blacklight into your gas tank to search for red dye is one way police or tax inspectors can check for off-road, untaxed diesel. Another option is to “lowering a test strip into the tank to dip it Even diluted red diesel can be detected by a test strip.
Even when severely diluted with water, red diesel is quite easy to distinguish “fuel that is clear With petrol prices as high as they are, it’s logical to assume that officials will be inspecting tanks more frequently.
You could risk a hefty fine if you are caught running off-road diesel. Many states impose a $1,000 minimum fee per petrol tank. If the fine is higher, these same states charge $10/gallon instead. That’s before any federal fines for tax evasion.