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HMRC internal manual

Biofuels and Fuel Substitutes Assurance

Accounting: Duty point/Payment dates

Accounting for Excise Duty: Disposal

The excise duty point for biofuels and fuel substitutes is the time when they are either

  • Sent out from entered premises
  • Set aside* for chargeable use* by a registered producer, who produces more than 2,500 litres a year; or
  • Used as a motor fuel by a producer or other person who is not an exempt producer, and who uses 2,500 or more litres a year.

  • “Set aside” is the point at which the finished product is intended for use by the registered producer or intended for sale for use as a motor or heating fuel.

  • “Chargeable use” means the use of that substance:

    • as a fuel for any engine, motor or other machinery, or
    • as an additive or extender in any substance used as fuel for any motor, engine or other machinery
    • for the production of bioblend or bioethanol blend

When a biofuel or fuel substitute has been set aside for a chargeable use and it is delivered to home use, duty should be accounted for on form HO930 (for non-deferment account holders) or form HO10 (for deferment account holders).