HCOS2150 - Registered Dealers in Controlled Oils (RDCO): records

All RDCO traders are Revenue Traders and must keep their business records in accordance with Notice 206.

All distributors will prepare and issue delivery tickets and sales invoices to their wholesale customers. The minimum information required on both documents will be:

  • customer name
  • delivery address
  • product
  • date
  • quantity.

The sales invoice will also show the price, the VAT rate and the VAT amount.

Note The VAT rate on supplies of rebated oil of less than 2,300 litres to end users is 5%.

Computerised records will also include:

  • sales day books
  • nominal accounts
  • possibly nominal accounts by product.

Some distributors will categorise their customers which may be very useful to you. They will code them into four or five categories such as domestic, farmers, hauliers, industrial and commercial.

Sometimes they may keep information by product, ie all customers buying kerosene or gas oil.

Manual records will also usually have customer accounts.

All RDCOs will have some form of stock control system and records.

RDCOs who supply red diesel for use in private pleasure craft are required to keep additional records in accordance with Notice 554 and include:

  • the declarations made by private users
  • a record of the amount of duty charged and collected showing a clear audit trail between the declaration, duty collected and duty paid.

RDCOs who supply Avtur for private pleasure-flying are required to keep additional records in accordance with Notice 554 and include:

  • signed and dated declarations from purchasers that the fuel is for private pleasure-flying
  • a note if the purchaser declines to make a declaration but the RDCO thinks the fuel is to be used for private pleasure-flying.

You should spend a little time understanding the trader’s system before you start examining records as it may save time later on. You may be able to obtain all you need at the push of a button!

If necessary, in order to obtain the assistance of Audit Service when investigating oils trader’s computer systems, Audit Service should be approached through the appropriate Senior Audit Specialist via the Customer Compliance Manager.