Due to a recent number of inspections by HM Revenue and Customs (HMRC), it has been identified that a number of golf courses and landscape maintenance contracting companies use red diesel (Rebated fuel) in Tractors that are registered with the DVLA (Driving and Vehicle Licensing Agency) taxed (Nil rated) and insured for use on the road, when they should only be using white diesel (Fully duty paid fuel).Misinterpretation and lack of knowledge is apparent and in many cases the assumption is made that as it is an Agricultural tractor, it may use red diesel and if they are using it in a horticultural sector (Amenity) they are compliant. This is not the case.

Using the HMRC website and theExcise Notice 75: fuels for use in vehicles Updated 12 March 2019,

In which it states under section “8.3 Tractors- to use red diesel, your tractor must be an agricultural tractor designed and constructed primarily for use otherwise than on roads. You must not use the tractor on public roads for activities other than for:

· purposes relating to agriculture, horticulture or forestry

· cutting verges bordering public roads

· cutting hedges or trees bordering public roads or bordering verges which border public roads

· gritting roads, including travel to and from where gritting takes place, and for the collection of equipment and material for gritting”

You may interpret that the terms Agriculture, horticulture and forestry apply to the amenity sector, after all the Health and Safety Executive (HSE) regard the Amenity Sector within the Agricultural and Horticultural bracket, the Chemical Regulations Directorate (CRD) regard Amenity within the Horticulture sector under the Field of Use definition on pesticide labels, HMRC do not.

HMRC have within the excise notice addressed this with a questions and answers section in the appendix

“Q3. What are purposes relating to horticulture?

In their view horticulture is the cultivation and management of gardens (including vegetable plots, allotments and market gardens, but also flowerbeds, trees, shrubberies and ornamental lawns in public parks). By cultivation and management, they mean growing and tending flowers, lawns, shrubs and trees, and harvesting flowers, fruits and vegetables for food (or animal fodder) and for ornament, as well as treating and enriching the soil and controlling weeds and pests. However, they do not regard as horticulture the landscaping and maintenance of grassy recreational areas, such as playing fields and golf courses, or the grassed areas of parks that are made available for walks, picnics and general recreation”

If you fall in this work classification, you must not use red diesel and should only use white diesel; there are caveats to this: if your vehicle is unlicensed according to the DVLA and or SORN (Statutory Off Road Notifications) where the vehicle is not kept or used on public roads, or it is a mowing machines (a complete vehicle) not an attachment you can use red diesel. Please check the link to ensure you comply.

What will happen if you misuse rebated fuel?

Where HMRC find your road vehicle is fuelled with rebated fuel, they will seize it. They may also issue an assessment of fuel duty payable and a wrongdoing penalty based on the extent of your illegal fuel use.

In the more serious cases involving assault, repeated offending and/ or dishonesty, criminal action may be taken. The offender can be fined an unlimited amount or imprisoned for up to seven years, or both.

Other Offences and penalties apply with a £250 civil penalty under the Finance Act 1994 applied.

For further information you can contact HMRC by telephone: - 0300 200 3700 or email via an excise general enquiry form

https://www.tax.service.gov.uk/shortforms/form/CITEX_EGEF