Accounting: 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