Why do Businesses Use Red Diesel?
If you are regularly using red diesel it can sometimes be tough to clearly define what is legal and illegal use. This means that some customers will use white diesel and this often leads to them paying a lot more then they need too. This blog aims to cover the issues surrounding red diesel and how it can legally be used.
First of all lets just define red diesel. Red diesel is pretty much the same as normal white diesel that is available to buy from all forecourts across the country. It is however much cheaper and this is for a number of reasons. Firstly it is taxed less this is because it is not intended to be used on road vehicles. Red diesel like the name suggests had been dyed this is so HMRC can identify it.
9/10 times red diesel is only intended to be used on vehicles that are not to be taken on the road. However, there are certain exceptions and this is how the confusion can occur. In November 2013 the legislation regarding red diesel was changed so that vehicles are now permitted to grit public roads can now run on red diesel.
So what other vehicles can use red diesel?
Vehicles that are involved in forestry, horticultural and agricultural activities. These vehicles are usually tractors, forklifts, combine harvesters, gritters and cranes. These vehicles can all run on red diesel. Any other road going vehicles cannot use red diesel. It used to be simple as any vehicle with a tax disc had to use white diesel. However tax discs no longer exist. One more point to consider is that if a vehicle that can use red diesel is being driven on a public road and not completing an activity related to their work, then they must use white diesel.
That covers which vehicles can use red diesel there are however a few more points to take note on. You cannot mix white and red diesel in your fuel tank, when you store red diesel it must be indicated on the storage tank that it cannot be used as road fuel. This is something Ingoe Oils has to do with all its packed fuels. If you want to supply others with red diesel you must be approved by HMRC.
Red diesel can be used on a variety of plant and machinery more detail on this will be covered in next weeks blog. Ingoe Oils supplies red diesel in bulk and packed fuels throughout the North West.
Call Ingoe Oils today and find out if you could save money on your fuel.