HMRC: Retailers Must Register for Rural Fuel Duty Relief Scheme by Deadline

• The Rural Fuel Duty Relief Scheme provides a rebate on excise duty for retailers selling unleaded petrol and fully duty-paid diesel in specified rural areas.
• Retailers must register with HMRC to claim the rebate and begin passing on the reduction to consumers within 60 days of registration.
• Claims must be made on a monthly basis, and retrospective claims cannot be made for any period.
• HMRC can consider late claims where there is reasonable cause.

Retailers must pass on the full relief to consumers once the introductory 60-day period has come to an end.

The Rural Fuel Duty Relief Scheme was introduced to support motorists in rural areas with high fuel prices by compensating fuel retailers with a rebate on excise duty. The scheme applies to retailers of unleaded petrol and fully duty-paid diesel sold within specified rural areas, which were chosen due to their high road fuel prices prior to the introduction of the scheme. Since its inception, the scheme has undergone changes to extend relief to more areas, with the latest amendment in 2022 allowing for sales of fully taxed fuel used for machines no longer entitled to use rebated fuels. Retailers must register with HMRC to claim the rebate and begin passing on the reduction to consumers within 60 days of registration.

The Rural Fuel Duty Relief Scheme is governed by UK laws, which specify that retailers can only claim relief if they are selling fully taxed fuel in specified areas. The scheme's rules also dictate that retrospective claims cannot be made for any period and that claims must be made on a monthly basis. Compliance officers should note that the 60-day introductory period allows retailers to avoid initial cash flow problems, but by law, they must pass on the full relief to consumers once this period has ended. HMRC can consider late claims where there is reasonable cause.

The Rural Fuel Duty Relief Scheme provides crucial support to motorists in rural areas with high fuel prices by compensating fuel retailers with a rebate on excise duty. The scheme's extension to more areas and sales of fully taxed fuel used for machines no longer entitled to use rebated fuels demonstrates its adaptability to changing circumstances. Compliance with the scheme's rules is essential, as failure to pass on the full relief to consumers can result in penalties. Lawyers advising clients on rural fuel retail should emphasize the importance of timely registration and monthly claims to ensure compliance.

Lawyers advising clients on rural fuel retail should note that claims must be made on a monthly basis, and retrospective claims cannot be made for any period. Compliance officers should ensure their clients are aware of the 60-day introductory period to pass on the full relief to consumers.

Source: Original reporting via GOV.UK