A Straightforward Guide To Breach Management
The task of addressing violations of the Landfill Tax Regulations 1996 is shared by Entrust and HMRC. Breaches can range from submitting reports late, such as landfill contributions or transfers between EBs, to misusing funds for non-approved purposes. Not sending in an Annual Return (Form 4) can lead to an EB being temporarily suspended.
Our Approach to Breaches
When we suspect a breach, we investigate and take necessary actions. Our Breach Management framework, which you can find on our website, details this process. It allows us to handle each case based on its specific details and the EB's history of compliance. Depending on how serious the breach is, or if we think funds are in danger, we might escalate the situation more quickly. In severe cases, we might refer the issue to HMRC, which could lead to the EB being forcefully removed from the LCF scheme and a potential repayment of tax credits.
Case-by-Case Evaluation
Each situation is unique and judged on its own facts. However, some key principles are always in play, such as fairness and transparency. Imposing penalties is a significant decision, and our approach aims to maintain trust in LCF regulation.
Working Towards Compliance
Throughout the breach management process, our goal is to help EBs fix the breach and guide them back to compliance.
The decision to impose sanctions against an EB is a serious step. A fair, transparent and proportionate Breach Management framework is essential to the maintenance of stakeholder confidence in the regulation of the LCF.
At all stages of the Breach Management process we will work with you as an EB to try to remedy the breach and coach you to compliance.
Understanding Your Responsibilities
A summary of what you need to do to stay compliant with the Regulations is also available on the right hand side of this page.