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HMRC internal manual

Hydrocarbon Oils Strategy

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HM Revenue & Customs
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Registered Dealers in Controlled Oils (RDCO): penalty letter for failure to render RDCO returns and / or pay the duty on supplies of red diesel for use in private pleasure craft

(i) The suggested wording (currently for the Mineral Oil Reliefs Centre) to include is as follows:

On [date of telephone contact] you were telephoned by an officer from HM Revenue & Customs, who explained that, in order to continue as a Registered Dealer in Controlled Oils, you must send HMRC your HO5 returns [When? Each month? Specified dates? State here].

According to our records you have not sent your HO5 return for the [enter period details] and so a penalty of [£penalty amount] is chargeable. This penalty is payable immediately. I enclose two copies of penalty notice form EX601.

If you pay by banker’s draft, cheque or postal order, you should enclose copy (2) with your payment, and keep copy (1) for your records. If you pay by BACS or CHAPS you should quote the EXA reference number and make the payment to the Bank of England, sort code - 10-00-00, account number - 22073051, account name - Bank of England Miscellaneous Account.

What to do if you disagree

If you do not agree with our decision to charge the penalty, you can:

* ask for my decision to be reviewed by an HMRC officer not previously involved in the matter, or
* appeal to an independent tribunal 

If you opt for a review you can still appeal to the tribunal after the review has finished.

If you want a review you should write to [name / team] at [address] within 30 days of the date of this letter, giving your reasons why you do not agree with my decision. We will not take any action to collect the disputed tax while the review of the decision is being carried out.

If you want to appeal to the tribunal you should send them your appeal within 30 days of the date of this letter.

You can find further information about appeals and reviews on the HMRC website http://www.hmrc.gov.uk/dealingwith/appeals.htm or you can phone the number on this letter. You can find out more about tribunals on the Tribunals Service website or you can phone them on 0845 223 8080.

If you do not ask for a review or appeal to the tribunal, and we do not receive your payment by [enter date for 10 working days], we may take further action, such as revoking your RDCO approval. You would then no longer be authorised to deal in controlled oil.

You should remember that you must send HO5 returns by the due dates in future or a further penalty of £250 will be chargeable for each late return.

(ii) There is no standard letter for issue if an RDCO supplying to pleasure boats has failed to render a payment return and / or paid the duty but suggested wording to include is as follows:

‘According to our records your return and / or payment for [month] was not received by the due date. We brought this to your attention in correspondence dated [ ] and you have failed to respond. This is in breach of the Hydrocarbon Oil and Bioblend (Private Pleasure-flying and Private Pleasure Craft)(Payment of Rebate etc) Regulations 2008, which state at regulation 8 payment of rebate -

(1) Where a person who supplies a quantity of rebated heavy oil or bioblend that is to used as fuel for propelling a private pleasure craft is required to pay the amount specified in section 14E(4) of the Act, that amount must be paid to the Commissioners at the address, or into the bank account, provided by them for the purpose.

(2) Payment must be made no later than twenty-one days after the end of the period for which, in relation to such supplies, a return is required to be made. ]

and attracts a penalty under Section 9 of the Finance Act 1994; you have therefore rendered yourself liable to a penalty of £250….

Enclosed is Form EX601 setting out the details of the Civil Penalty’… .