Could you be eligible for a diesel road user charges refund?
Tax Alert - August 2020
By Jeanne du Buisson and Robert Sheetz
If you operate a fleet of diesel vehicles (including trucks that are class 2 and above) you may be eligible for a refund of diesel road user charges (RUCs).
RUCs are generally only payable to the extent that the vehicle is used on a public road. Therefore, if you have a diesel vehicle that regularly travels off public roads (i.e. on private roads such as farms or forestry roads), the RUCs should be refundable to the extent the vehicle is not used on a public road.
Companies that regularly use vehicles to travel distances off public roads should be tracking these distances if they are not already.
Some companies have systems/technologies in place which “turn off” the odometer of a vehicle when it detects it has gone off a public road. However, for a company that does not have this kind of system in place for its fleet, incurring RUCs for regular distance travelled off public roads could represent an unnecessary additional cost to the business.
The main sectors that this is applicable to are agriculture, dairy, forestry and construction.
Refunds of RUCs can also be payable in other circumstances, for example:
- Unused distance due to hubodometer change; and
- When a vehicle is permanently destroyed, exported or its registration cancelled.
If you think any of the above may apply to you or your business, please get in touch with your Deloitte advisor and we can discuss how we may be able to assist you with applying for a refund of RUCs. We note that claims must be made within two years of the issue date of the RUCs for which the claim is made.
August 2020 Tax Alert contents
- Could you be eligible for a diesel road user charges refund?