Accounting procedures: Late returns
Section 8.7 of Notice 476 requires that the trader makes daily TP7 returns, unless you have authorised him to make monthly returns under the duty deferment arrangements.
In the case of deferred payments, the return must be made in time for the trader’s account to be debited on the 15th day of the month (or as otherwise allowed by regulation 17 of the “Tobacco Products Regulations 2001”). To ensure that the trader meets this requirement, the consolidated TP7 should be presented within currently 4-5 working days after the end of the monthly accounting period. You should agree the actual time limit with the trader, after consulting the CDO.
Known instances of late returns are few. If you encounter this problem you may take action under Section 7(2) of the ‘TPD Act 1979’ and regulation 9(1) of the“Tobacco Products Regulations 2001”. Since the failure to render returns may attract civil penalties, you should read the guidance in X-51 (Civil Penalties).
You should also inform the Tobacco Team of such cases because of the possible revenue and policy effects.