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HMRC internal manual

Oils Technical Manual

HM Revenue & Customs
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Tables: table P: payment of rebate - action to be taken by LB, Local Compliance and MORC

On receipt of the original application

Action by officers

If you receive a letter asking for a licence to use rebated heavy oil as fuel, containing details set out in Notice 75 paragraph 6.3, from a large business, refer the matter to Large Business (LB) Oil and Gas Sector team which covers the address where the rebated oil is to be stored.

If you receive a letter asking for a licence to use rebated heavy oil as fuel, from a SME, refer the matter to MORC.

On receipt of a referred application

Action by MORC, LB/Local Compliance Assurance Officers

On receipt of the referred application, you should decide whether a visit to the applicant is necessary. Do not delay consideration of the application and reply pending such a visit.

As well as the items listed in HCOTEG122550 consider the following before making a decision or arriving at a recommendation.

The issue of a licence allows the licensee to use marked/rebated heavy oil as fuel on the public road.

A ready willingness to issues a licence could undermine the enforcement effort of the Road Fuel Testing Unit (RFTU) and each application should be examined critically.

  • The application must demonstrate that diesel cannot be used and why. It does not suffice for the applicant to claim that diesel is difficult to obtain.
  • Applications to pay the rebate (instead of using diesel) on heavy oil for use as fuel in Fire Brigade appliances, Local Authority Ambulances, liveried Police vehicles, or any other vehicles, are usually to be refused, if the vehicle in question is licensed to use the public road.

Taking a decision or making a recommendation whether or not to grant a licence

Action by LB/Local Compliance

Make a recommendation to MORC on the basis of any knowledge of the applicant which you already have or can obtain via HMRC databases.

Grant or refusal of a licence

Action by MORC

MORC - When you have received a recommendation from either LB, LC, or Policy, you should issue the licence (or not) based on the recommendation given.

You should use the specimen licence given at HCOTEG213850 as a template.

The initial accounting period should begin on the day of issue of the licence and end on 31 March, 30 June, 30 September or 31 December.

You should determine whether subsequent accounting periods should be quarterly or annually dependant on frequency of journeys and amount of payment.

Send copies to:

  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • The Road Fuel Control Officer (for the storage of the oil).

You should use the specimen letter refusing authorisation given at HCOTEG213800 as a template.

Post Authorisation

Action by LB/Local Compliance Assurance Officers

If you recommend that the applicant be approved, you will subsequently receive copies of all estimates, supplementary estimates, additional payments and returns that a licensee in your area sends to Cumbernauld Accounting Team (CAT).

Those copies should allow you to establish the extent of legitimate use of rebated heavy oil as fuel in the event of a detection by the RFTU.

Each vehicle legitimately using marked heavy oil as fuel in accordance with these Regulations should have on board some indication that a valid licence is in force

If you decide/recommend that the applicant be approved, you may later be expected to conduct an audit of the standard of compliance with the regulations by each licensee in their area.

Pay particular attention to record keeping and stock control of the oil.

Serious or aggravated breach of the regulations or repeated instances of under payment of rebate, are grounds for withdrawal of the licence.