Customs & Excise clarifies red diesel rules

HM Customs & Excise has clarified the position of contractors and plant hirers regarding the requirements of the Registered Dealers in Controlled Oil (RDCO) Scheme (CJ 26 February).

The concessions came after the Construction Confederation (CC), the Construction Plant-hire Association and the Hire Association Europe demonstrated to Customs that the administrative burden faced by their members was excessive.

Liz Bridge, the CC's tax expert, said: "Contractors which have a bowser on site and refill their own machines or fill the tanks of subcontractors without charge need not register."

Contractors which charge subcontractors for refilling (rather than including the supply in the contract) or those who hire out plant to third parties must register.

Plant hirers can record the incoming and outgoing of diesel at their bunkers with invoices/delivery notes. For outgoing records only the name, registration or fleet number of the plant item need to be recorded.

Hirers will be allowed to submit total returns (aggregated returns) consisting of the total quantity drawn from the bunker and the total number of plant fill-ups that month. Hirers that only supply machines with operators need not register, but they should explain this to their fuel supplier.

Bridge said contractors should register if they are unclear about their situation.