CCL - penalties and interest

By Tolley
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The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • CCL - penalties and interest
  • Registration penalties
  • Failure to penalties
  • Failure to comply with CCL (General Regulations) 2001
  • Inaccuracy penalties
  • Taking Control of Goods (Walking possession agreements)
  • Correcting errors
  • Excluded and exempt / reduce rate supplies
  • Interest
  • Security
  • Evasion penalty
  • Appeals and reviews

This guidance note provides an overview of when penalties and interest will be imposed in respect of CCL errors.

Notice CCL1/5: Penalties and interest  ); De Voil Indirect Tax Service V21.161 (subscription sensitive)
Registration penalties

From 1 April 2010 the following penalty is applied where a business fails to register for CCL at the correct time. The penalty is tax geared based on a percentage of the amount of CCL due for the period:

  • beginning on the date that the business was required to be registered from
  • ending on the date that HMRC receive notification of the business registration or become aware that the business is required to be registered

If a business becomes aware that it has failed to register at the correct time and voluntarily notifies HMRC of this fact then the amount of penalty imposed may be reduced. Also if the business assists HMRC with assessing the amount of CCL due or grants access to the business records, etc then the penalty may also be reduced for the quality of the disclosure made. Please see the Penalties - failure to notify - overview guidance note for more information.

Failure to register for CPS rates of CCL

With effect from 1 April 2013, if a business is required to be registered in order to account for the CPS rates of CCL, and it fails to register at the correct time, then it will be liable to a late notification penalty which is tax geared based on a percentage of the levy due The business will be liable for the period:

  • beginning on the

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