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HMRC internal manual

Biofuels and Fuel Substitutes Assurance

Accounting: Duty deferment

Duty deferment

Subject to the conditions described in Notice 179, registered producers of fuel substitutes, biodiesel, bioethanol and their blends may defer their excise duty. They will need to obtain a deferment account and make their payments via BACSor CHAPS.

Duty deferment guarantees

Biofuel and fuel substitute producers will need to provide a guarantee if they are going to defer their excise duty liability. At the time of publishing this guarantee must be sufficient to cover one month’s maximum excise duty liability, or £9.5 million, whichever is the lower.

Details of how to obtain a deferment account and the excise duty accounting procedures are given in Public Notice 179.


However from 1 February 2007 some traders may become authorised to defer or make payments without a guarantee, providing that they meet the eligibility and authorisation criteria for the Excise Payment Security System (EPSS)

For further information on EPSS see HCOBIG9300