Apply for fuel relief

You may be able to pay reduced fuel duty on some oils your business uses.

Oils you pay duty on

You have to pay fuel duty on oil your business:

  • uses to fuel an engine or any other type of machinery
  • adds to fuel used for engines or any other type of machinery
  • uses for heating

Oils you don’t pay duty on

Oils used for any other business purpose are called ’tied oils’ and you may be able to get reduced fuel duty on these. You must have HMRCapproval to pay reduced fuel duty.

How to get approval

To get approval, complete form HO27 and return it to HMRC. The address is on the form.

Sea voyages

You can claim relief on heavy and light oils you use at sea, eg diesel or petrol, as long as:

  • you don’t use inland waterways
  • your ship isn’t a pleasure vessel

How to claim

Complete form HO50 and send this back to HMRC. The address is on the form.

Read more about fuel relief for marine voyages on the HMRCwebsite.

Rural fuel duty relief

You can claim this relief if you sell unleaded petrol or diesel as road fuel in:

  • the Inner and Outer Hebrides
  • the Northern Isles
  • the Islands of the Clyde
  • the Isles of Scilly

How to claim

You must register to claim rural fuel duty relief, then complete and return form HO81 to HMRC.


Author: MixoBiz

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