Fuel retailers can now register for the rural fuel duty rebate pilot scheme, following confirmation of the legislation in Parliament. The pilot was given the go-ahead last month by the European Union, to start in March 2012. It allows for a 5ppl tax discount to apply on fuel sold in Scotland’s Inner and Outer Hebrides, Northern Isles, the islands in the Clyde and the Isles of Scilly.

Details of the scheme are as follows:

Who is eligible to claim relief?

You can claim relief if you are a retailer of road fuel (unleaded petrol and diesel) within the Inner and Outer Hebrides, the Northern Isles, the Islands of the Clyde and the Isles of Scilly. (They are not eligible to register if you purchase fuel in bulk, for example, for your own business use.)

How does the relief scheme work?

If you are a retailer of road fuel within the areas concerned you can register with HMRC to claim five ppl relief on fuel you purchase on or after January 1, 2012 for onward retail sale in the Inner and Outer Hebrides, the Northern Isles, the Islands of the Clyde and the Isles of Scilly. You can make claims on a monthly basis.

You will have 60 days following your registration to reduce the cost of every litre of road fuel sold by the equivalent amount of the relief claimed. This is so that all consumers in the areas concerned benefit from the reduction in fuel duty.

The 60-day period during which retailers are not required to pass on the relief is designed to help avoid initial cash flow problems.

How do I register?

To register you need to complete form HO80 Claim for duty relief (Scottish Islands and Isles of Scilly) – available online <http://www.hmrc.gov.uk/briefs/excise-duty/brief4011.htm> .

The form can be completed electronically but must be printed and returned by post to:

HM Revenue & Customs

Mineral Oils Relief Centre

BP4002

Benton Park View

Longbenton

Newcastle-upon-Tyne

NE981ZZ

You can also phone the Excise and Customs Helpline on Tel 0845 010 9000 and ask them to send a form for you to complete and return. A separate registration is needed for each retail premises.

HMRC will then write to confirm that you are registered as a qualified claimant.

How do I claim the relief?

You need to register with HMRC to claim relief. HMRC will not accept a claim from any retailer who is not registered.

To claim the relief you need to complete form HO81: Claim for duty relief (Scottish Islands and Isles of Scilly), which will be available on the HMRC website in January 2012, in time for your first monthly claim. You will also be able to obtain a copy from the Excise and Customs Helpline Tel 0845 010 9000.Claim periods will be based on a calendar month. You can only submit one claim per month.

HMRC will pay the relief claimed within 30 days of receiving the claim.

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