How to register as a substitute fuel producer

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How to register as a substitute fuel producer

The taxation of bio-fuels in the UK has changed in 2007 so now people making bio-fuels for their own use do not have to register for the payment of tax. Basically, if you make your own bio-fuel – by any method including the use of SVO, then there is no need to pay the tax. However, if you intend to set up to make bio-fuels on a commercial scale then it is necessary to register to pay the tax collected to HM Revenue and Customs. This page explains how to do this…

Fuels used for transport purposes on roads attract high levels of taxation. If you are considering the production of bio-fuels on a commercial scale ( This is set at over 2,500 litres per year), then you should register with H.M. Customs & Excise as a substitute fuel manufacturer. You will then be able to pay directly to H.M. C&E the amount of Duty that is charged on the fuel per liter each month. They will post to you a personalised and dated form for that purpose towards the end of every month and you have to complete the form and post it the Birmingham Tax Office before the 15^th day of the following month. This procedure is not designed for individual drivers, but for large oil manufacturing companies, who have permanent staff available to carry out such duties. Once registered, it is a an offence not to provide the information and payment on time, so you should consider what to do if you are ill or away on holiday.

The first step is to request a copy of form Ex 103, Excise Entry : Private Trader. You should request a copy of this simple form from your local Customs & Excise Office (as recorded in your local telephone directory), or download a copy from this site. It is a large file and may take several minutes to download.

Once downloaded and printed, the form is simple to complete. Basically, it means your details are 'entered' on a register of fuel makers, and also it gives H.M. C&E the right to enter your premises at any time to inspect what you are doing. However, they do have that right any way if they suspect you are producing contra-band fuels (read our story).

The form requires your name, trading address, a description of what you are doing, and the signature of a witness. The description we registered is as follows....

"The experimental manufacture of fuel oils, spirits and greases derived from organic materials"

This form should be sent to:-

HM Revenue and Customs
Birmingham Tax Accounting Centre
2 Broadway
Broad Street
Birmingham
B15 BG

A month after the receipt of the form you should receive a form HO930 Excise Duty on Fuel Substitutes and Additives. This form should be completed at the end of every month and returned, with the appropriate payment, to the address given on the reverse of the form. It really is that simple!

Click here to download a copy of form HO930 as a bit map. You can then edit it to insert your own name and address etc.

Completing the monthly HO930

I do not use the boxes provided in categories ORR 33541 to ORR 33511. I use the blank row at the bottom of the table and complete it as follows....

ORR 33545 Modified Used Vegetable Oil

It is also possible to edit the form to remove all the boxes with fuel types that do not apply.

You then fill in the boxes to show the volume of fuel you make every month in litres, multiply it by the reduced tax rate at 25.82p per litre, and total the amount you have to pay. To classify for the reduced tax rate your fuel must comply with the following criteria:-

1) It must be made from waste or used fat - so new vegetable oil from the supermarket is not eligible

2) It must be at least 96.5% ester content by weight - remember that fat is 100% ester of glycerol

3) It must have less than 0.005% sulphur content by weight - which non fossil organic materials will be.

Because the form is printed on both sides I have provided the reverse image as well which has the old address in Southend-on-Sea. We also suggest that everyone sends a simple post card with a local picture with each payment to register the fact that you are a private person paying duty on the use of non-fossil fuels as required by the UK Government. This simple technique marks our payments separately to those made by the petrochemical giants.

May I also suggest that you place some form of sticker in the windows of your vehicle to make it clear that you are burning an alternative fuel. This serves two purposes. Firstly it informs the police or any suspicious party that the fuel you are using is not elicit. It proudly states that you have made a choice to burn an alternative fuel. Secondly, it also serves to inform the public of the existence of alternative fuels, and you may be surprised how much public attention and interest your stickers will attract. I also have a supply of leaflets that explain to anyone who asks about the importance of bio-diesel or straight oils as a transport fuel.