The Insurance Premium Tax Regulations 1994

PART III ACCOUNTING, PAYMENT AND RECORDS

Making of returns

12.—(1) Subject to paragraphs (2) and (4) below and save as the Commissioners may otherwise allow, a registrable person shall, in respect of each accounting period, make a return to the Controller, Central Collection Unit (IPT) on the form numbered 4 in the Schedule to these Regulations.

(2) Lloyd’s may, in respect of any two or more syndicates of underwriting members of Lloyd’s for which it is required by regulation 9(3) to act as representative as regards an accounting period which, as regards each such syndicate, begins on the same date and ends on the same date, make a return on the form numbered 5 in the Schedule to these Regulations; and, provided it is accompanied by a summary schedule on the form numbered 6 in the Schedule to these Regulations, the making of a return under this paragraph shall be treated as sufficient compliance with paragraph (1) above in relation to the accounting period of each of the syndicates concerned.

(3) Subject to paragraph (4) below, a registrable person shall make each return not later than the last day of the month next following the end of the period to which it relates.

(4) Where the Commissioners consider it necessary in the circumstances of any particular case, they may—

(a) vary the length of any accounting period or the date on which it begins or ends or by which any return must be made;

(b) allow or direct the registrable person to make a return in accordance with sub-paragraph (a) above;

(c) allow or direct a registrable person to make returns to a specified address;

and any person to whom the Commissioners give any direction such as is referred to in this regulation shall comply therewith.

Correction of errors

13.—(1) In this regulation—

“credit” means credit to which a person is entitled under Part IV of these Regulations;

“overdeclaration” means, in relation to any return, the amount (if any) which was wrongly treated as tax due for the accounting period concerned and which caused either the amount of tax which was payable to be overstated or the entitlement to a payment under regulation 19(1) to be understated or both or would have caused such an overstatement or understatement were it not for the existence of an underdeclaration in relation to that return;

“underdeclaration” means, in relation to any return, the aggregate of—

(a)

the amount (if any) of tax due for the accounting period concerned which was not taken into account; and

(b)

the amount (if any) which was wrongly deducted as credit,

and which caused either the amount of tax which was payable to be understated or the entitlement to a payment under regulation 19(1) to be overstated or both or would have caused such an understatement or overstatement were it not for the existence of an overdeclaration in relation to that return.

(2) This regulation applies where a registrable person has made a return which was inaccurate as the result of an overdeclaration or underdeclaration.

(3) Where, in relation to any overdeclarations or underdeclarations that are discovered by the registrable person in an accounting period—

(a) the total of the overdeclarations discovered does not exceed £2,000, he may enter that total in the box opposite the legend “Overdeclarations from previous periods” in the return for that accounting period;

(b) the total of the underdeclarations discovered does not exceed £2,000, he may enter that total in the box opposite the legend “Underdeclarations from previous periods” in the return for that accounting period;

and, where he does so, he shall calculate the tax payable by him or the payment to which he is entitled accordingly.

(4) Where the return for the accounting period in which the overdeclaration or underdeclaration was discovered is made by Lloyd’s in accordance with regulation 12(2), paragraph (3) above shall apply as if the references to the totals of the overdeclarations or underdeclarations not exceeding £2,000 were references to each such total for each syndicate in respect of which the return is made not exceeding £2,000.

(5) No amount shall be entered in any return in respect of any overdeclaration or underdeclaration except in accordance with this regulation.

(6) Where any amount has been entered in a return in accordance with this regulation, that return shall be regarded as correcting any earlier return to which that amount relates.

Claims for overpaid tax

14.  Except where the amount to which the claim relates has been entered in a return in accordance with regulation 13 or is included in an amount so entered, any claim under paragraph 8 of Schedule 7 to the Act shall be made in writing to the Commissioners and shall, by reference to such documentary evidence as is in the possession of the claimant, state the amount of the claim and the method by which that amount was calculated.

Payment of tax

15.  Save as the Commissioners may otherwise allow or direct, any person required to make a return shall pay to the Controller, Central Collection Unit (IPT) such amount of tax as is payable by him in respect of the accounting period to which the return relates no later than the last day on which he was required to make the return.

Records

16.—(1) Every registrable person shall, for the purpose of accounting for tax, keep and preserve the following—

(a) his business and accounting records;

(b) policy documents, cover notes, endorsements and similar documents, and copies of such documents that are issued by him;

(c) copies of all invoices, renewal notices and similar documents issued by him;

(d) all credit or debit notes or other documents received by him which evidence an increase or decrease in the amount of any premium, and copies of such documents that are issued by him;

(e) such other records as the Commissioners may specify in a notice published by them and not withdrawn by them.

(2) Every registrable person shall keep and preserve the records specified in paragraph (1) above for a period of six years.

(3) The reference in paragraph (1)(d) above to any premium shall be construed for the purposes of that paragraph as it would be construed for the purposes of Part V of these Regulations.