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HMRC internal manual

Debt Management and Banking Manual

HM Revenue & Customs
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Debt and return pursuit - Excise Duties (other than APD): Who is liable to pay the debt? Duty on mineral oils?

Duty is charged on oil imported into the UK or produced in the UK and delivered forhome use from any mineral oil producer’s premises or direct-import warehouse. SeeX-27 Mineral Oils.

Duty is charged either at the full rate of excise duty or at a (rebated) reduced rate. Forexample:

Unleaded petrol is liable to duty at the full light oil rate, and does not attract rebate.Gas oil (DERV/ULSD) is liable to duty at the appropriate heavy oil rate but duty can alsobe accounted for at a rebated (reduced) rate when gas oil is marked and dyed and deliveredfor a qualifying off-road use.

Kerosene can be delivered at a fully rebated rate (NIL) when marked for use as heatingfuel.

Relief from excise duty is available in specific circumstances such as oil used formanufacturing purposes, use in ships’ engines, etc.

Drawback of excise duty can be claimed when oils are exported or destroyed.

The warehouse keeper, refiner or producer

The warehouse keeper, refiner, or producer, is responsible for keeping accurate recordsand paying duty due.

However, payment of the duty may be deferred on mineral oil removed from warehouses.Section 127A of the Customs and Excise Management Act 1979, and the Excise Duties(Deferred Payment) Regulations 1992 [S.I. 1992/3152] referred to as “ED(DP)R”,provide that the payment of any excise duty on mineral oil may be deferred subject to suchconditions or requirements as the Commissioners may impose. The deferment accountingperiod for excise duty is from 0000 hours on the 15th day of each month to 2400 hours inthe 14th day of the following month. Payment day is the last business day of the lattermonth. Payment is to be made in accordance with Notice 179 Mineral (Hydrocarbon Oils: Dutyand VAT: Warehousing and related procedures).

Warehouse keepers may be acting as agents for the approved person

Regulation 5 (1) of the Other Fuel Substitutes (Payment of Excise Duty etc) Regulations1995 [S.I 1995/2717], provides:

“(1) Subject to paragraph (2) below, a producer shall in relation to his premises notlater than the fifteenth day of the month next following the preceding month-

(a) pay the Commissioners at the address the amount of excise duty charged by section 6Aof the Act in respect of all liquid fuel and all liquid additive or extender sent out fromthose premises in the preceding month and in respect of all liquid fuel and all liquidadditive or extender put to a chargeable use (within the meaning of section 6A) at thosepremises in the preceding month; and

(b) furnish the Commissioners at the place which for the purposes of subparagraph (a)above

constitutes the address a return in respect of the preceding month on the form set out inSchedule 2 to these Regulations containing full information in respect of the mattersspecified in the form and a declaration, signed by him, that the return is true andcomplete.”

Where the 15th day is not a working day, the due date is the last working day before the15th.

This Regulation does not apply to those producers who apply for authority, and have beenauthorised, to pay duty arising under the terms of s.6A of the Hydrocarbon Oil Duties Act1979, in accounting periods beginning on the 15th of one month and ending on the 14th ofthe following month. Such producers declare this liability on Form HO10 in lieu of FormHO930 set out in Schedule 2 to these regulations.