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HMRC internal manual

Securities Guidance

From
HM Revenue & Customs
Updated
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Calculating the amount of security: the quantum calculation: estimating future revenue risk using taxable turnover: Aggregates Levy

It is possible to calculate the amount required in security by estimating future liability based on the registrable person’s estimated ‘taxable turnover’.

The person includes an estimate of the annual tonnage of aggregate to be commercially exploited on the AGL1 registration document. Always round up the figure.

Example 

Estimated level of tonnage 50,000 x rate per ton £2.00 / 2 = six month quantum of £50,000.00.

If the AGL1-estimated taxable turnover is all the information you have, consider issuing a warning letter to prompt the person to provide more information on which to base your calculation of the amount of security.

It is essential that you keep a written record of how you came to your decision on the amount of security. This will be invaluable if the person appeals to tribunal or requests a review, see SG70200.