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HMRC internal manual

Aggregates Levy Guidance

HM Revenue & Customs
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Errors and Assessments: Errors

Errors found by aggregates levy businesses

You can find guidance on how to correct errors found in records by aggregates levy businesses in section 12.9 of Notice AGL1 Aggregates Levy - see link in AGL1100.

The law is contained in Finance Act 2001, Section 25(2) and regulations 7(1)(b), 27, 28 and 29 of The Aggregates Levy (General) Regulations 2002.

The business must notify the errors to HMRC before any enquiries into their aggregates levy records start to avoid liability to an inaccuracies penalty. However, there is still a liability to interest at the normal rate.

When a business makes an error correction, you should raise an assessment/ disclosure Form AL641, following the procedures in section AGL7700.

You may amalgamate more than one assessment or error correction for the same period, which can be useful for large businesses. If payments have already been received for more than one error correction with different receipt dates, these cannot be amalgamated.

Claims for overpaid levy

Over-declarations discovered during a current accounting period, and relating to previous accounting periods should be declared in Box 1 on the AL100 return form.

However, a business may not wish to make the claim via the return form and may make a written claim. This could be because there is some time until the return is due. Whether the claim is made via the return form or otherwise, it must be within four years of the overpayment. A claim made in writing must be made under the terms of the Finance Act 2001, Section 31(3), Section 32, and Schedule 8, and regulation 19 of The Aggregates Levy (General) Regulations 2002.

For details of unjust enrichment see section AGL9000.