A new Memorandum of Agreement giving guidance on the use of red diesel in agricultural, horticultural and forestry vehicles on the road has been released.
HMRC and the Driver Vehicle Licensing Agency, the National Farmers’ Union (NFU), the National Association of Agricultural Contractors (NAAC) and the Confederation of Forest Industries (ConFor) have jointly released the agreement.
The aim of the agreement is to clarify how farmers and agricultural contractors can use rebated fuel, and ensure both the industry and enforcement officers have a clear and common understanding of how the law will be interpreted and applied.
Under current legislation, the exemption defines a tractor as a vehicle used on public roads ‘solely’ for purposes relating to agriculture, horticulture, forestry or cutting verges bordering public roads; or cutting hedges or trees bordering public roads or bordering verges which border public roads. The new Memorandum more clearly defines the meaning of ‘solely’ as well as clarifying those activities, which are acceptable, uses of red diesel.
“We have had a clear message from HMRC that red diesel is intended for off-road use and the agricultural sector is allowed the exemption for road use when this is incidental to the agricultural operation being carried out on the land,” said Jill Hewitt, chief executive of the NAAC. “We are delighted it has been made clear that contractors are allowed to use red diesel to move between agricultural operations, but we must not abuse our privilege and I would urge all operators to take note of the Memorandum. It can only be a positive step to have clear guidance, so that if you are stopped you can actually feel confident that you are OK.”
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