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HMRC internal manual

Hydrocarbon Oils Strategy

From
HM Revenue & Customs
Updated
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Registered Dealers in Controlled Oils (RDCO): assurance process

Trader population

There are approximately 3,800 RDCOs. Invalid trader numbers are no longer published on the Intranet for security reasons. The Mineral Oil Reliefs Centre (MORC) can confirm whether a quoted RDCO number is valid or invalid.

Selection of visits

Assurance Officers will visit an established RDCO for one of the six following broad reasons:

  • The RDCO has not rendered a return.
  • An analysis of the returns they have made has highlighted areas of interest in the sales patterns (RETURN visit).
  • The detection of misuse of rebated or tied oil by a customer of a RDCO requires checks to establish whether reasonable steps were taken on selling that product (MISUSE visit).
  • Following a visit by assurance staff, a repeat visit is required to determine whether issues identified during the initial visit have been addressed (REPEAT visit).
  • The RDCO has not paid the duty on supplies of red diesel for use in private pleasure craft.
  • In addition, a regular programme of assurance visits is formulated at the start of each year which is based on issuing visits for an agreed percentage of high / medium / low risk traders (DEFAULT visit).

RIS will provide details of the reason for each visit, checks done, any other relevant information and the action required.

RIS will identify any relevant cross-regime issues and allocate the case for appropriate action.

MORC took over administration of ‘return visits’ (see above) from late 2008, where there are outstanding returns and penalties.

Policy Team will issue updates on visit priorities and expectations as necessary.