HCOTEG122525 - Repayment of Rebate Provisions: Introduction
Licence to use rebated fuel in a vehicle or machine not entitled to use rebated fuel
All vehicles and machines must use fully duty paid fuel. Excepted machines may use rebate fuel as detailed in Schedule 1a of HODA 1979.
In very limited circumstances, rebated heavy oil can be used in machines that are not ‘excepted machines’.
In order to use rebated heavy oil in a machine that is not entitled to use rebated fuel, a licence must first be obtained from HMRC, and then the rebate, i.e. the difference between the full rate of duty on thefuel and the rebated rate actually paid on the fuel used, must be paid.
Law
The Hydrocarbon Oil (Payment of Rebate) Regulations 1996 provisions permit, in exceptional circumstances, the payment, by licensed users, of the rebate on rebated fuel, thus allowing the use of rebated fuel in a machine not entitled to use rebated fuel.
Public Notice 75
Public Notice 75 ‘Using rebated fuel in vehicles or machines’ provides information on the vehicles and machines entitled to use rebated fuel and on making an application for a licence to repay the rebate so rebated oil can be used for a purpose not entitled to use rebated fuel.
Roles and Responsibilities – a simplified overview
Following the guidance given in this section:
The Excise Helpline provides information on making an application for a Licence to use rebated fuel in a vehicle that is not an excepted machine.
BT Ops Glasgow (the Mineral Oils Reliefs Centre) (MORC) is responsible for receiving and processing applications for Licences to use rebated oils in a machine not entitled ot use rebated fuel.
Applications are to be made in writing in accordance with Public Notice 75.
On receipt, applications are forwarded by MORC (BT Ops Glasgow) via the Regional Risk Teams to Oils Assurance Officers in Individuals and Small Business Compliance (ISBC) or for large businesses sent direct to the Large Business (LB) Oil and Gas Sector team responsible.
LB or ISBC Oils Assurance Officers examine the application, consider whether a pre-authorisation visit is necessary, carry out the visit, and then decide whether a Licence should be granted or refused, and then make a recommendation to this effect to MORC (or BT Ops Glasgow, once the work has been transferred).
MORC / BT Ops Glasgow issue the Licence or send the applicant a refusal depending upon the recommendation made, notifying the Accounting Centre when the licence is issued.
On receipt of a notification that a licence has been issued, the Cumbernauld Accounting Team (CAT) notes their records, and then issues a set of HO72 and73 Return Forms to the applicant.
CAT later receives and processes the HO72 and HO73 Return Forms accounting for the paymentof the Rebate.
At the end of the accounting period CAT issues Form HO75, and Form HO74 on the eve of the Budget as may be required.
For full details of the procedures to be followed see HCOTEG122550,together with Table P at HCOTEG213755 and TableQ at HCOTEG213756.