NEW HMRC diesel rules that come into play on April 1, 2022, will ban the use of red diesel for tractor road runs and ploughing matches across the UK.

The majority of these road runs raise much needed funds for various charities, and organisers fear this income could be severely hit come April.

Technically speaking, the use of red diesel in tractors for road runs has been discouraged for a few years, but it seems to be a new requirement for tractors at ploughing matches to be on white diesel.

The major diesel use changes are a result of the government’s decision to remove the entitlement to use rebated diesel and biofuels from most sectors from April 2022 to help meet its climate change and air quality targets.

These tax changes, said the government, will ensure that most users of rebated diesel use fuel taxed at the standard rate for diesel from April 2022, like motorists, which more fairly reflects the harmful impact of the emissions they produce.

The government said: “Restricting use of rebated diesel and biofuels, including marked oils, will also help to ensure that the tax system incentivises users of polluting fuels like diesel to improve the energy efficiency of their vehicles and machinery, invest in cleaner alternatives, or just use less fuel.”

Agriculture is one of very few sectors that was further permitted to use red diesel, but the ‘agricultural use’ definition has been severely tightened.

HMRC permits the use of red diesel for ‘vehicles and machinery used in agriculture, horticulture, fish farming and forestry'. This means farmers and agricultural contractors can use red diesel during agricultural use. Excavator operators can also use it if the job is agricultural – but if it’s on a construction site, the tank must be flushed out and white diesel used.

HMRC confirmed the same rules apply to tractor road runs and ploughing matches. Michael Lyttle from HMRC said: “These wouldn’t be acceptable uses of red diesel.”
Stanley Livingstone helps run the Livingstone Christmas Tractor Road Run each year, Northern Ireland’s biggest such event, attracting 750 tractors.

Stanley said: “We have been holding our event for ten years now and have raised over £650,000 for charities. It’s a total disgrace if tractor drivers will be forced to use white diesel.

“They simply will stop coming to the runs and it will be the charities that suffer. Northern Ireland folk are very generous with their time and money when it comes to charities. We never know when we may need one of them in our lives.

“It costs a lot of money to host the tractor road runs and to prepare tractors and transport them to the event. People take pride in their tractors making sure they are spotless for road runs.

“No participant will flush the red diesel out of their fuel tanks to fill them with white just to go on a road run. This could spell the end of the tractor road runs, but we are determined to fight for our event and continue somehow to raise money for our charities,” he said.

HMRC said they won’t be checking the fuel on all tractors on the back roads of Northern Ireland and would mainly target the high fuel users.

Gordon SNP MP Richard Thomson has written to the Chancellor of the Exchequer asking him to row back on the threat from HMRC, describing its as "yet another attack on rural Scotland from the UK Government who either don’t know or don’t care about the knock-on consequences of this ill-thought out policy".

Mr Thomson said he had been contacted by a constituent involved in ploughing matches for over 30 years who now feared for the continued existence of these events.

“The UK Government and HMRC have form in this regard," said Mr Thomson. "Back in 2008, they tried to ban the use of red diesel in tractors which were being used to help with setting up agricultural shows but relented under pressure.

“This time is even more serious as it threatens the existence of ploughing matches and the charity road runs by tractor enthusiasts which raise so much money for good causes.

“I don’t see how there can be any serious argument on the part of HMRC that ploughing matches are not agricultural work given the skills that they help develop," argued Mr Thomson. "I have written to the Chancellor of the Exchequer asking him to intervene and ensure that a sensible approach is taken by HMRC so that these popular events can continue."

Orkney and Shetland MP, Alistair Carmichael, has also raised concerns in Parliament, lodging a parliamentary motion with cross-party support to voice concern about this interpretation of the HMRC regulations, and highlighting the social benefits of tractor runs and other events to rural communities.

Mr Carmichael said: “It beggars belief that HMRC seriously expect people to flush out their red diesel in order to join a tractor run. Do they really think that the greatest scourge of tax fraud in this country is caused by farmers joining the occasional social or charity event? A little sense of proportionality and practicality from HMRC would not go amiss.

“At this time of year in particular, anything that brings a bit of light and colour to the streets has got to be welcome. The creativity of our farming community during the festive tractor run was quite spectacular and it was a credit to the organisers and people around the isles that so many participated and so many donated to charitable causes. We should be celebrating and encouraging these sorts of events, not putting ridiculous and impractical tax barriers in the way.”