HMRC issues guidance over end to red diesel rebate in 2022

The International Powered Access Federation (IPAF) is advising members to review newly published guidance from HM Revenue & Customs about the end to tax relief on red diesel for construction plant machinery in the UK from 1 April 2022. IPAF is available to assist members wherever possible in preparing for the upcoming change.

Last year, IPAF voiced the powered access industry’s concerns as Rishi Sunak, the Chancellor, opted not to further postpone his decision to end the red diesel tax rebate, and signalled that the Treasury will remove the rebate at the end of this financial year.

Richard Whiting, IPAF’s UK & Ireland Market General Manager, says “Our members have expressed multiple concerns around the negative consequences of this change, from increasing costs to end-users and stifling investment in greener plant machines, to confusion over hire of machines between different sectors, and incentivising criminal activity, creating a possible black market in white diesel worth over £100 million a year.

“I, therefore, urge our members to review the guidance that HMRC has just published, which goes some way to clarifying the details around the end of the rebate and offers advice on how to prepare for the change ahead of 1 April 2022. In the meantime, IPAF will also be reviewing the guidance and stands ready to listen to remaining questions or concerns from our members. We will offer further advice and support where possible.”

Peter Douglas, CEO & MD of IPAF, says: “As an organisation, IPAF is well placed to collate and consider the sorts of day-to-day issues our members expect to face when the rebate ends next April, and we will work as we always do to share industry good practice, support and advice from our own experts and from our experienced members in order to try and minimise the impact and disruption this change might bring.

“I advise all UK members to familiarise themselves with the newly issued HMRC documents and to get in touch with specific questions or concerns you think IPAF should be made aware of at the earliest opportunity.”

● Visit or click the link to view and download the guidance on changes to rebated fuels entitlement from 1 April 2022. Please email if you have a query in respect of this issue that IPAF may be able to assist with.

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