Although 1st April feels like a while away, we all know it will come around fast, which is why starting to prepare now for the fuel reform will save you time and stress.
1) Log it
It would be a good idea starting to log what fuel is being used on site. After 1st April, HMRC may carry out spot checks, therefore, having evidence ready will save you a potential headache. You can create an inventory list of all the vehicles and appliances that are currently using red diesel to help keep track.
2) Do the maths
Next, work out how much fuel each vehicle or appliance is using. Note down the date the tank was filled and how many litres of fuel was used. If using a vehicle is a simple calculation you can do is :
Final mileage – Starting mileage / how many litres the tank was filled with = fuel consumption.
By estimating how much fuel each engine is using, you will be able to estimate how much red diesel is currently in use on your site.
3) Keep the log going
Now you have your inventory list of all the vehicles and appliances using red diesel and have worked out how much fuel your fleet is using, you are in a better position already. Keep the log going and make sure you include any jobs up until the reform date.
It may be best to create your own Fuel Friday on site by scheduling some time to review your calculations and plan your own switchover plan.
4) Start reducing
Is it possible to start reducing future fuel orders with your forecast set? By reviewing your future fuel orders to ensure you are only ordering what you will use before 1st April, you could save money. If, however you do end up with a surplus of red diesel there are a few options according to the government
- Sell or give it to someone who is allowed to use it (see sectors link above)
- Sell or give it to a registered dealer in controlled oil
- Or you can safely dispose of it via an approved recycling or disposal company.
As previously mentioned, keep evidence of how the fuel was sold or disposed of just in case you need to provide proof in the future.
5) Bring the deadline forward
To avoid a last-minute rush, it may be best to bring the deadline forward, even by a week. This way, if you do realise there is going to be a surplus of red diesel on-site after 1st April, you have enough time to have it collected.
In summary
If you would like information on your current fleet with us, or are interested in anything else, feel free to pop us an email info@garic.co.uk or give us a call on 03300 948060