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Changes in obligations on biofuel producers

Note: This is our original regulation update text, published on 26 June 2007. Unlike the rest of our site, this archived material is not updated if the law changes.

Relevant to
Biofuel producers in the United Kingdom

Took effect on
30 June 2007

From 30 June 2007, certain changes will apply to the biofuel sector. A biofuel is a renewable fuel - eg biodiesel, bioethanol or certain straight vegetable oils - derived from biological matter.

Very small producers of biofuels that produce less than 2,500 litres per year will no longer be required to:

  • register production premises with HM Revenue & Customs (HMRC) 
  • make returns on the biofuel they produce
  • pay excise duty

Small to medium-size producers whose premises are registered will be allowed to make quarterly returns and pay duty quarterly - instead of monthly as at present.

Large producers are notified of their status by HMRC and are not affected by the changes. They must continue to make monthly returns and monthly payments.

Registering production premises  

As a producer of biofuel, if your production levels meet either of the following two conditions you must register by the given time:

  • the thirtieth day following the end of any calendar month in which you will have produced 2,500 litres or more of biofuel over the previous 12 months 
  • the thirtieth day following the day on which you have reasonable grounds to believe that you will produce 2,500 litres or more of biofuel in the following 12 months

Once you meet the registration criteria, you must not send out a consignment of biofuel, which is charged with biofuels duty, before you register those premises.

If you do not meet either condition, you are not liable to register your premises and will be an exempt producer. However, this could change in a month in which you do meet the minimum threshold. In addition, exempt producers must keep certain specified records at the production premises for six years, or for a shorter period if so allowed by HMRC.

Full title of regulation
The Biofuels and Other Fuel Substitutes (Payment of Excise Duties etc) (Amendment) Regulations 2007

From
HM Revenue & Customs

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