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HMRC internal manual

Debt Management and Banking Manual

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HM Revenue & Customs
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Debt and return pursuit: Climate Change Levy: power to take recovery action for a CCL debt

The power to recover assessments is contained in paragraph 78 (5) of Schedule 6 to the Finance Act 2000.

CCL shall be recoverable as a debt due to the Crown (paragraph 77 of Schedule 6 to the Finance Act 2000).

Assessed amounts (including penalties and interest) are deemed to be amounts of CCL and may be recovered as debts due to the Crown.

Debts due to the Crown

The legislation covering Environmental Taxes can be found in DMBM450140.

Power to recover interest

The power to recover interest is contained in paragraph 88 (3) of Schedule 6 to the Finance Act 2000. A combination of ordinary interest and penalty interest (compound interest) is charged for late payment of CCL.

See Notice CCL1/5 Penalties and Interest.

Power to recover excessive repayments of CCL

Where an amount has been paid in error, we can assess the excess paid to that person and recover is as CCL (paragraph 67 of Schedule 6 to the Finance Act 2000). We can seek to recover interest that we have paid to these persons in respect of these overpayments (paragraph 68 of Schedule 6 to the Act).

These assessed amounts are recoverable as levy due (paragraph 69 (2) of Schedule 6 to the Finance Act 2000).

Power to recover civil penalties as CCL due

Civil penalties are issued to penalise persons for breaches in the regulations or for failures such as the failure to render returns and pay levy due. There are 3 types of penalty:

  • fixed penalties of £250
  • penalties amounting to a % of the amount of duty involved and
  • daily penalties of a fixed sum (£20) chargeable for every day that a failure continues (e.g. failure to produce documents).

Where a person is liable to a civil penalty, we may assess the amount due by way of penalty and notify it to him accordingly (paragraph 106 (1) of Schedule 6 to the Finance Act 2000). Where an amount has been assessed and notified to any person under paragraph 106 of Schedule 6, it shall be recoverable as if it were levy due from him (paragraph 106 (4) of Schedule 6 to the Act). The power to make an assessment for a civil penalty is subject to review and appeal. Penalties and Debt Management Team has policy for interest and civil penalties.

For example, a failure to produce records attracts a one-off £250 penalty plus further penalties of £20 per day for every day that the person fails to produce the records.

Power to recover penalty interest on unpaid civil penalties

If a penalty is not paid by the due date for payment we charge interest from that date until the penalty is paid (paragraph 111 (1) of Schedule 6 to the Finance Act 2000). Where an amount has been assessed and notified to any person under paragraph 111 of Schedule 6 to the Act, it shall be recoverable as if it were levy due from him (paragraph 111 (30 of Schedule 6).