Memorandum from the Commissioners of Customs
1. At its meeting on 13 May 2002 the Committee requested
a Memorandum about this instrument on the following points:
"(1) Explain the meaning of "transitional
accounting period" in new regulation 6A. In particular explain
how a person's accounting period can precede the first day of
his first accounting year.
(2) Is the expression "transitional period"
in regulation 6D(2)(a) and 6E(1)(e) intended to read "transitional
accounting period", and is the expression "transitional
or current accounting year" in regulation 6E(1)(d) intended
to read "transitional accounting period or current accounting
year"? If not, explain their meaning.".
The first point
2. The transitional accounting period is designed
to cover the period between the end of a registered person's final
accounting period under the normal arrangements (set out in regulation
3 of the Climate Change Levy (General) Regulations (S.I. 2001/838))
and the beginning of his current accounting year under the annual
3. The first accounting year will not necessarily
commence immediately after the end of the quarter for which the
final return under the normal accounting arrangements is submitted.
It may be helpful to give the following example. A registered
person's "normal" accounting periods are for quarters
ending on the last days of March, June, September and December.
Having submitted the return for April - June under the normal
arrangements, the registered person applies on 10 July (i.e. in
his July - September accounting period) for authority to use the
annual accounting scheme and is authorised by the Commissioners
on 25 July. The first accounting year assigned under the annual
scheme will commence on 1 August. In this example, the transitional
period will commence on 1 July (i.e. "commencing on the first
day of a person's [normal] accounting period in which the Commissioners
authorise him to use the scheme") and end on 31 July (i.e.
"the day immediately preceding the first day of that person's
first accounting year").
The second point
4. The Commissioners confirm that the expression
"transitional period" in regulation 6D(2)(a) and 6E(1)(e)
is intended to read "transitional accounting period",
and the expression "transitional or current accounting year"
in regulation 6E(1)(d) is intended to read "transitional
accounting period or current accounting year".
5. The Commissioners regret these errors which were
due to an oversight and are grateful to the Committee for drawing
them to their attention. The Commissioners accept that these errors
will need to be corrected at the earliest convenient opportunity.
The Commissioners expect that the principal Regulations will need
to be amended again in the early autumn and they intend to include
a suitable provision then.
16 May 2002