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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): examining records

This section suggests records to look at, checks to carry out and information to look for during a RDCO assurance visit. In addition you should consider other sources of information, eg financial accounts, references, and carry out further checks if you think they are necessary to determine the compliance of a trader. At bulk distributors and retailers you will be required to collect information on customers who may potentially be misusing the oil they are buying. (This content has been withheld because of exemptions in the Freedom of Information Act 2000)

  1. Approval

Check all details on the approval are correct, including details of all partners or company directors, types of oil dealt in and delivery sites.

  1. Duty of care
  • Establish and record (and on subsequent visits review) the trader’s system for making checks and recording information in accordance with Notice 192.
  • In a selected period, check sales and delivery records to ensure that all the information required under paragraph 5.5 of Notice 192 is recorded for all supplies. (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • Dry brokers are not exempt from the duty of care requirements and have a responsibility to ensure the point(s) of physical supply have adequate measures in place.
  1. Returns
  • Establish and record the trader’s record keeping system and how the return is compiled.
  • Trace a sample of delivery notes through the sales records to the return to check that all supplies are included.
  • Examine available records including yard books and cash records to ensure all supplies are included in the returns.
  • Check that bulk supplies are recorded in the correct section of the return and not included in the pump sales or domestic sales figures.
  • Check record of domestic supplies to ensure single deliveries of over 3,500 litres or supplies of over 10,000 litres in a rolling year are reported in section 4 of the return (Credibility checks should be carried out on large domestic supplies).
  • If returns are incomplete or inaccurate you should direct the RDCO to submit a replacement return. Any missing data that is considered relevant for FIS attention should be uplifted and dealt with in accordance with the next paragraph. If the trader fails to submit complete and accurate returns you should deal with the non-compliance in accordance with the following guidance.
  1. RDCOs supplying fuel used in private pleasure craft or for private pleasure-flying - additional checks
  • Establish and record the trader’s system for making checks and recording information in accordance with Notice 554.
  • In a selected period, check sales and delivery records to ensure that all the information required under paragraphs 3.6, 3.8, 3.9 and 12.4 of Notice 554 is recorded for all supplies.
  • Establish and record how the payment return is compiled by suppliers of red diesel for use in private pleasure craft and that the returns and payments are made.