Red Diesel Changes for Grounds Maintenance

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Red Diesel Changes for Grounds Maintenance is set to change from the 1^st of April 2021, this blog looks at what clubs will and will not be able to continue to use red diesel (rebated fuel) in their turf care machinery after that date.

Possible exemptions

Based on some research l have been reading from the Community Amateur Sports Clubs (CASC), your club has to apply or be registered for this scheme to continue to use red diesel, over the more expensive white diesel option.

CASC link – http://www.cascinfo.co.uk/

Just being a community-based sports club will not entitle you to use red diesel, you need to be registered for exemption via the HMRC. There are benefits to doing this such as tax relief and gift aid and obviously being able to use red diesel in your turf care machinery.

Being a CASC is an ongoing process, if at any time qualifying conditions have changed from when you’re registered, then you could be deregistered.

If you are already a CASC community club, you should have received clarification in regards to changes before the 1st of April deadline.

Link to HMRC- https://www.gov.uk/government/publications/community-amateur-sports-clubs-detailed-guidance-notes/community-amateur-sports-clubs-detailed-guidance-notes

The only exceptions to the regulations will be farming and golf course maintenance machinery and heating of (CASC) community facilities. Exceptions do not extend to travelling of machinery use on public highways.

Current Stock

From my research end users are not to build stock and are not permitted to use up their current stock past the April the 1^st deadline.

Disposal of surplus red diesel from the 1st of April, has to be done by either

1. Selling it onto CASC clubs or another sector authorised to use.
2. Give/sell it to a registered dealer in controlled oil
3. Disposal via an approved waste oil recycling or disposal company

Note: You will need to keep records to show how and when the fuel was disposed of or sold.

If you will not be able to use or dispose of red diesel before April 2022, email oils.policymail@hmrc.gov.uk as soon as possible. 

If your club is a charity, then it’s unlikely you’re also a CASC community club, so some research may be required by your club.

Is your club currently on the directory of clubs registered, click on the link here to find out-  https://www.gov.uk/government/publications/community-amateur-sports-clubs-casc-registered-with-hmrc–2

How will this be policed

The HMRC will offer guidance and record keeping to our diesel supplier, to ensure evidence of our compliance. This will be done pre and post the 1^st of April deadline.

If we are not CASC clubs and do not have a letter of exemption, we need to seek clarity on our position as where we source our diesel from is being monitored for ours and their compliance.

I am also hearing from sport turf contractors, when upon trying to buy red diesel suppliers are telling them they will no longer be supplying red to them.

This comes at a terrible time for clubs and contractors, with the increase of it seems everything we buy, but also, we have no real choice to comply.

Exemptions

• Only clubs that are CASC registered clubs will be allowed to continue to use red diesel from the1st of April
• Golf course turf machinery
• Business owners mowing (casc) sites only.

This has also come as a shock to me, l now have to use up my stock of red diesel by the deadline and also order in my stock of white diesel at a higher cost, not welcome news for many of us.

I have done my best to compile the best information l have so l would also recommend you also take a look at this link, which has the clearest information l have seen – https://www.bali.org.uk/help-and-advice/equipment/red-diesel-v2/

If you are in any doubt what so ever then email HMRC at – reddieselentitlement@hmrc.gov.uk

A Statement from the Grounds Management Association

The GMA are continuing communications with the Government for clarity concerning the use of red diesel. In recent weeks, Government will have been focused on the events taking place in Ukraine which will inevitably add to cost implications on the supply of fuel, but the GMA have received confirmation that communications have taken place internally with the Treasury regarding clarity on use of red diesel for the sector, as well as the potential financial impact this will have on the grounds management community and on sport.

We understand there will be concern within the sector, but our exchanges with Government have been positive and we will continue to seek clarity on red diesel legislation. The GMA will continue to share updates with our membership and the wider sector when further information is received.

Summary

Lets hope the GMA can get clubs the support what they need, but also noting for the CASC clubs red diesel will still be a option.

The challenge at the moment is how to plan ahead, but at least the GMA are fighting our corner so lets hope for some positive news for non CASC clubs and sports contractors.

Been a challenging year with changes to fuel, to read more on changes from e5 to e10 take a look at this blog –https://turfcareblog.com/turfcare-news-e10-fuel-concerns-for-mowers-pests-pitch-damage/