Companies who are in the Climate Change Levy Agreement scheme should be aware that HMRC is currently undertaking audits.
HMRC undertakes sporadic audits to ensure the CCA is being applied at the correct rate to appropriate sites.
Before an audit you will usually receive a letter from HMRC asking for basic information such as:
- Invoices for selected periods
- PP10/PP11 forms (which are issued if you receive a rebate on your energy tax)
- Historical records on eligibility calculations (ie 90/10 and, more recently, 70/30)
If your record-keeping looks accurate it’s likely that no further involvement would be required. If there are discrepancies, however, HMRC may decide to undertake a more detailed investigation.
If there are discrepancies you could face severe penalties. “All this points to the need to ensure you are complying with all the rules around the CCA and that your records are accurate and up-to-date,” says IEC MD Mike Jones.
For further help and guidance on the CCA, please get in touch on 01244 571830.