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HMRC internal manual

Biofuels and Fuel Substitutes Assurance

HM Revenue & Customs
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Biodiesel and bioblend - production, storage and delivery: duty accounting


Each consignment of biodiesel charged with excise duty must be entered in the Motor Fuels Record before it is sent out from, or used on the producers premises. (Biofuels and Other Fuel Substitutes (Payment of Excise Duties etc) Regulations, 2004 (BoFSR)Regulation 13(1) and Schedule as amended by the Biofuels and Other Fuel Substitutes (Payment of Excise Duties etc) (Amendment) Regulations 2007 (BoFSAR).

Quarterly Returns

Producers of 2,500 litres or more and less than 450,000 litres per annum must complete return form HO930 for each quarter and send the form with payment, by the fifteenth day of the month following the end of the quarter, to Debt Management and Banking (DMB).

(BoSFR, Regulation 19). (See Notice 179E)

If the producer is approved under the Excise Duties (Deferred Payment) Regulations1992, an HO10 return is required and the payment day will be the day specified in the Deferment Regulations. (BoSFR, Regulation 19(6)).

Monthly Returns

Large producers, who produce 450,000 or more litres per annum, will complete HO930 or HO10 (if approved for deferment) each month, and submit with payment, by the fifteenth day of the month following to DMB.

(BoSFR, Regulation 19). (See Notice 179E)

Unit of Account

The unit of account for excise duty purposes is the “standard litre”, i.e. litres @15°C (BoSFR. Regulation 13(2).

Exempt Producers

Producers of less than 2,500 litres per annum are exempted from the requirement to enter their production premises, to render returns or to pay excise duty on the biofuel they produce.


The relative proportions of biodiesel and heavy oil will determine the duty rate for eventual duty payment. The method of measurement must meet HMRC accuracy requirements as per Notice 179. The respective quantities of biodiesel and heavy oil must be expressed as a proportion by volume to the nearest 0.001% for duty accounting purposes.(Hydrocarbon Oil Duties Act, 1979 (HODA) sections 6AB(3) and (4)).

Imported bioblend is liable to excise duty on importation (HODA, 6AB (1)(a).