Red Diesel Use

It is important that users of red diesel understand the implications of its use on their business and operations, as using red diesel illegally can lead to severe penalties. JMW’s commercial road transport solicitors can help you and your business to stay compliant.

If you have been accused of using red diesel illegally, our solicitors can advise and represent you during any prosecution proceedings to achieve the best outcome.

To speak to a solicitor if you have concerns about your use of red diesel, or if you have been accused of illegal usage, contact JMW today by calling 0345 872 6666. Alternatively, fill in online enquiry form to request a call back.

How JMW Can Help

Early planning is crucial when it comes to red diesel use to ensure compliance with legislation. Our team is vastly experienced in providing assistance, advice and representation to both businesses and individuals in relation to red diesel use.

We provide a high-quality service and offer pragmatic legal advice and solutions to the problems faced by operators, transport managers, professionals, and other industry players. Poor compliance with regard to transport laws can not only attract the attention of regulators, but also lead to potential criminal prosecutions.

Our solicitors are familiar with both the regulatory areas and the criminal procedures. Often when one set of criminal proceedings ends, the regulatory process starts. It is the wide nature of our expertise that allows us to offer a full service to those in the transport sector and devise commercially sensible and industry-specific solutions when a problem arises.

Meet Our Team

What Is Red Diesel Fuel?

Red diesel is a type of diesel fuel designed for use in particular off-road vehicles and machinery applications. It is chemically identical to regular diesel but is taxed at a reduced rate because it is intended for specific industries and applications where standard taxation would create excessive financial strain. As such, it is dyed red to distinguish it from standard diesel, which is otherwise called white diesel.

White diesel fuel is taxed at a higher rate than red diesel, and the red dye helps authorities to identify illegal use. It is sometimes called "gas oil" or "tractor diesel" in reference to the most common applications.

Using red diesel in vehicles or machinery that are not authorised to use rebated fuel is illegal and may be considered tax evasion in serious cases. Penalties for such misuse can be severe, so it is important to understand the laws governing the use of red diesel before buying the product at a lower fuel tax duty rate.

What Are the Rules Surrounding Red Diesel Use?

On 1st April 2022, the rules in respect of red diesel changed somewhat drastically, narrowing the circumstances in which the use of red diesel might be permitted, and introducing a two-stage test that considers:

• The type of ‘excepted machine’ using the red diesel
• The actual use of the ‘excepted machine’ that is hoping to run on red diesel

What has not changed is that red diesel must not be used as a fuel unless it is used in an ‘excepted machine’ as defined in specific legislation. Because it is subject to a tax rebate, using red diesel under the wrong circumstances may be viewed as tax fraud.

Examples of ‘excepted machines’ include:

• Agricultural vehicles
• Special vehicles (e.g. digging machines, mobile cranes)
• Unlicensed vehicles
• Trains
• Vessels
• Mowing machines

There are very specific definitions in respect of the above list, and a vehicle must meet those definitions by virtue of both its design and the purposes for which it is used. The above list is simply a summary.

The fact that the different uses of the same vehicle may be the difference between the lawful and unlawful use of red diesel means there is an obligation to operators to make sure they know if and when they might need to flush their vehicle tanks.

What Powers Does HMRC Have in Relation to Red Diesel Use?

When HMRC officers are investigating and enforcing the appropriate use of red diesel, their powers include the ability to:

• Examine any vehicle and its fuel supply
• Require the vehicle’s owner or driver to open the fuel tank, or any other source, for inspection, testing or sampling
• Require anyone in charge of the vehicle to produce documentation relating to the vehicle or oil carried on the vehicle
• Enter and inspect any premises, apart from private houses, to inspect, test and sample any oil on the premises
• Require the occupier of the premises to facilitate the inspection, testing or sampling of oil, regardless of whether the vehicle or oil belongs to that person
• Ask those concerned with the sale, purchase or disposal of rebated fuel for their documentation
• Require satisfactory evidence that any fuel in possession is fully UK duty paid

What Are the Penalties for Illegal Red Diesel Use?

The penalties for using red diesel illegally can be severe. Vehicles found to be using red diesel illegally can be seized by the authorities, and the vehicle owner will then need to pay a fee for its release. Also, a fine for the offences may need to be paid, which is up to £250 for each offence, along with an amount to cover the duty owed, going back up to four years.

Serious offences for illegal red diesel use, involving assault, repeated offending, or dishonesty, can result in an unlimited fine to the operator and a prison sentence of up to seven years.