UK Red Diesel Reform: How Will Forklift Truck Hire Or Purchase Be Affected?
The UK government has announced plans for a UK red diesel Reform, which came into effect from 1st April 2022. This reform will affect various industries in the UK, so it's essential to understand how it will impact you.
What Is The UK Red Diesel Reform?
The UK red diesel reform is a UK government initiative that will come into effect from 1 April 2022. The reform will restrict the use of red diesel for propulsion purposes to non-road mobile machinery used off-road, such as construction equipment, agricultural tractors and forklift trucks.
If your business uses red diesel and other rebated fuels on roadways, you will need to switch to an alternative fuel source from 1 April 2022; however, if your equipment still has a full tank of red diesel, you will be allowed to use it until the end of April 2022. The same rule applies for those who have storage tanks with red diesel; all red diesel in these tanks will need to be used up by or before the end of April 2022.
Description Of The UK Red Diesel Reform And Legislative Changes.
From April 2022, red diesel used in off-road machinery will be subject to a new tax regime in the UK. The red diesel legislation changes are being made as part of a government commitment to meet climate change and air quality targets.
Red diesel has been used extensively in agricultural and construction machinery, as well as in forklifts and other industrial equipment. Red diesel and other rebated fuels are significantly cheaper than regular diesel and have been taxed at a lower rate since introduced in the 1960s.
Permitted uses for red diesel will be strictly limited and only allowed to be used in very specific sectors and operations. A list of the rules, regulations, and permitted uses of red diesel and other rebated fuels, as well as additional information regarding the reform of red diesel, can be found on the Gov.uk website.
The government has said that the changes will result in an increase in fuel costs for some businesses but insists that the long-term benefits of cleaner air will outweigh the short-term impact on businesses.
Will It Affect Forklift Hire And Purchase In The UK?
So, will the UK Red Diesel Reform affect the purchase and hire of forklift trucks within the UK?
The short answer is no; the changes to the use of red diesel will not have a direct effect on hiring or purchasing forklifts in the UK. However, there could be some indirect impacts felt by individuals and businesses that use forklifts or red diesel as part of their operations. This is because vehicles that are permitted to use red diesel and other rebated fuels will now be required only to use these vehicles for permissible purposes. Any business found not obliging to these rules could be forced to pay for any costs involved in seizing the vehicle and any other costs for the duty owed. This may lead to some businesses who use red diesel for their forklifts opting to switch to using standard diesel or biofuels instead so as to avoid any potential penalties.
Companies that offer hire forklifts, who have contracts with businesses that use red diesel for their forklifts may also be required to change the terms of the agreement to ensure that the customer is only using the vehicle for permissible purposes, or they could face penalties themselves. These contracts should also be revised in order to make necessary changes to the payment terms to compensate hire companies for higher fuel costs that are now being incurred due to the red diesel legislation (2022).
It is crucial for businesses to stay up-to-date with the latest information and changes to ensure that they are compliant with the new red diesel legislation. If you are a business owner and are unsure about how the reform of red diesel will impact you, you can find all the necessary information on the Gov.uk or ukmha.org.uk website.
