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HMRC internal manual

Oils Technical Manual

Traders accounts, records and returns: Operations on hydrocarbon oil

Producers premises

Except for certain premises covered in HCOTEG145000 (‘Synthesis Refineries’), producers must compile a balanced account of operations each month. If convenient this may take the form of the traders’ own charge and yield accounts. If a producer’s premises, includes a number of distinct processes, you may agree with the producer that separate records are kept for separate processes if this is mutually convenient to the trader and the revenue.

If a trader wishes to balance the return by weight rather than by volume this may be allowed but the quantity in litres must also be shown against those items which must be reconciled with other returns (e.g. the balanced stock account).

The record of operations need not be balanced unless the oil produced is derived from warehoused oil feedstock. When a balanced account is required, the balance must include oil and residues which are not required to be warehoused.

Deliveries of warehoused oil for use in Class A activities, e.g. manufacture of rebateable ‘cut-back’ preparations, should be included as a separate figure under the heading “oil used duty-free for eligible purposes”.

Class A producers who neither use nor produce oil that must be warehoused are not required to keep the record of operations.

Oil in process at the end of the month

Oil stored in the vessels covered by warehouse approval at a producer’s premises, should be included in the balanced stock account. Oil in process at the end of the month should be excluded, but must be included in the record of operations.

of chemicals from these primary products, e.g. alkylation to produce detergents.