Notice CCL1 Update 2

Tag : passing link chain

The main change in this Update is an amendment to the section onthe increased threshold for voluntary disclosure on tax credits.
8.14 What about errors on previous returns?
Subject to the limits for errors in paragraph 8.18 below,corrections to previous returns should be dealt with on the currentreturn either as corrections of errors (an underdeclaration erroror overdeclaration error) or as adjustments.
8.15 Under/overdeclaration errors
An underdeclaration error will arise when a person registered forCCL has made an error and understated the CCL due on a taxablesupply on any of their previous returns. An overdeclaration errorwill arise when a person registered for CCL made an error andoverstated the CCL due on a taxable supply on any of their previousreturns.
Underdeclaration errors include amounts where registered suppliers undercharge CCL, orwhere CCL is invoiced or due and not included on the CCL return, orwhen the total levy due has been calculated incorrectly andunderstated on the CCL return. There will also be anunderdeclaration where a claim for repayment is overstated.Underdeclaration errors also include payments from debtors for baddebt relief claimed if accounted for in the incorrect accountingperiod.
Overdeclaration errors include amounts where the total levy due has been calculatedincorrectly and overstated on the CCL return. Overdeclarationerrors also include overcharges of CCL which have been correctedvia a credit note which are not corrected in the accounting periodwhen the error is made. Claims for tax credits (other than bad debtrelief claims) are also treated as overdeclaration errors.
If the amount of CCL charged is overstated it should be accountedfor on the current CCL return as the amount charged. If the amountof CCL charged is understated it should be accounted for on thecurrent CCL return as the correct amount due.