Grit and grass – when can I use Red Diesel?

HMRC recently undertook a review into the use of rebated fuel (commonly known as red diesel) in vehicles engaged in activities which benefit charities and the community.

The review has recommended an extension of the rules to allow red diesel to be used to fuel tractors put to gritting activities. A consultation exercise will commence this year to determine whether new legislation is required; in the meantime the existing rules will remain in force. HMRC will keep an eye on the weather and may relax the rules on this particular excepted vehicle, in the event of a particularly severe cold snap.

Another aspect considered by the review concerned the use of tractors to perform grass cutting activities free of charge on communal land and recreation areas. The review recommended no change to the existing rules, although further guidance will be issued to help those concerned to better understand when red diesel can be used.

HMRC have issued two Revenue & Customs Brief’s (45/11 & 46/11) which are available from their website. These Brief’s contain helpful guidance on the use of red diesel by ‘excepted’ vehicles engaged in these particular activities.

Excepted vehicles include:

• Grass cutting vehicles
• Unlicensed vehicles not used on public roads
• Tractors
• Mowing machines
• Vehicles used for snow ploughing
• Gritters

Unlicensed vehicles include those which are not required to obtain a Statutory Off-Road Notification (SORN) and also vehicles where a SORN has been obtained.

Only agricultural tractors used to cut grass for animal fodder or hedge/verge cutting on public roads qualify as an excepted vehicle. Tractors which are used for landscaping or maintenance purposes will not qualify. HMRC provide examples of such vehicles as those involved in cutting grass on golf courses, playing fields, parks and cemeteries.

Mowing machines include only those vehicles which have been permanently adapted for mowing, not one where the mowing element can be removed and the vehicle altered back to its original form.

There is no restriction on the type of vehicle used to clear snow, but red diesel may only be used when travelling to or from the public road it has been engaged to clear. Conversely, only vehicles constructed or adapted to be used exclusively for the purposes of spreading material on the roads to clear frost, ice or snow qualify as an excepted vehicle.

For more information please contact Mark Peters on 01392 351311 or mark.peters@oldmillgroup.co.uk