Finance Act 2021

PART 2 U.K. Joint and several liability notices

Effect of joint and several liability notice U.K.

9 U.K. A joint and several liability notice given to a person (“R”) makes that person jointly and severally liable to pay plastic packaging tax that another person (“P”) will be liable to pay in respect of so much of any accounting period of P as falls within the period of two years beginning with—

(a) the day on which the notice is given to R, or

(b) if a joint and several liability notice is given to R at a time when another joint and several liability notice already has effect in relation to R, the day after the day on which the previous notice ceases to have effect.

Commencement Information

I1 Sch. 9 para. 9 in force at 10.12.2021 for specified purposes by S.I. 2021/1409, reg. 3

I2 Sch. 9 para. 9 in force at 1.4.2022 in so far as not already in force by S.I. 2021/1409, reg. 4

Test for giving joint and several liability notice U.K.

10 (1) The Commissioners may give a joint and several liability notice to R if the Commissioners consider that— U.K.

(a) R is acting in the course of a related business, and

(b) sub-paragraph (2) or (3) applies to R.

(2) This sub-paragraph applies to R if—

(a) R is concerned in, or in the taking of steps with a view to, P not paying plastic packaging tax, and

(b) R knows or ought to know that R is so concerned.

(3) This sub-paragraph applies to R if—

(a) R is involved in transporting, storing or otherwise dealing with a chargeable plastic packaging component in respect of which P is or will be liable to pay plastic packaging tax,

(b) P has not paid that tax in respect of that component, and

(c) P intends not to pay that tax in respect of that component.

(4) The Commissioners may—

(a) by regulations make provision about the factors which they may take into account in considering whether they may give a joint and several liability notice to R;

(b) issue directions about those factors.

Commencement Information

I3 Sch. 9 para. 10 in force at 10.12.2021 for specified purposes by S.I. 2021/1409, reg. 3

I4 Sch. 9 para. 10 in force at 1.4.2022 in so far as not already in force by S.I. 2021/1409, reg. 4

Content of joint and several liability notice U.K.

11 U.K. A joint and several liability notice must—

(a) state that R is jointly and severally liable with P to pay any plastic packaging tax that P is liable to pay in respect of so much of any accounting period of P as falls within the period of two years determined in accordance with paragraph 9, and

(b) set out why the Commissioners consider that it is appropriate to give a joint and several liability notice to R under paragraph 10(1), including whether the Commissioners consider that paragraph 10(2) or (3) (or both) applies to R.

Commencement Information

I5 Sch. 9 para. 11 in force at 10.12.2021 for specified purposes by S.I. 2021/1409, reg. 3

I6 Sch. 9 para. 11 in force at 1.4.2022 in so far as not already in force by S.I. 2021/1409, reg. 4

Copy of notice to be given to P U.K.

12 U.K. When the Commissioners give a joint and several liability notice to R, they must, as soon as practicable, give a copy of that notice to P.

Commencement Information

I7 Sch. 9 para. 12 in force at 10.12.2021 for specified purposes by S.I. 2021/1409, reg. 3

I8 Sch. 9 para. 12 in force at 1.4.2022 in so far as not already in force by S.I. 2021/1409, reg. 4

Revocation U.K.

13 (1) After being given a joint and several liability notice R must notify the Commissioners if paragraph 10(2)(a) or, as the case may be, (3)(a) (or both), does not apply or ceases to apply to R, including as a result of R ceasing to have dealings with P, at any time within the period of two years mentioned in paragraph 9. U.K.

(2) If—

(a) R notifies the Commissioners under sub-paragraph (1) within the period of 30 days beginning with the day on which R is given the joint and several liability notice (the “cancellation period”), and

(b) as a result of the notification the Commissioners consider that paragraph 10(2)(a) or, as the case may be, (3)(a), does not apply to R, including as a result of R ceasing to have dealings with P during the cancellation period,

the Commissioners must notify R that the joint and several liability notice is revoked with the result that R is not liable to pay any plastic packaging tax as mentioned in paragraph 9.

(3) If R does not notify the Commissioners under sub-paragraph (1), or notifies them only after the end of the cancellation period, R must be treated in relation to the period of liability as—

(a) knowing that R is concerned in, or in the taking of steps with a view to, P not paying plastic packaging tax as mentioned in paragraph 10(2), or

(b) knowing that P has not paid and intends not to pay tax as mentioned in paragraph 10(3).

(4) The period of liability is—

(a) if R does not notify the Commissioners under sub-paragraph (1) within the period of two years mentioned in paragraph 9, that period of two years, or

(b) if R does notify the Commissioners under sub-paragraph (1) within that period of two years but after the cancellation period, and as a result of the notification the Commissioners accept that paragraph 10(2)(a) or, as the case may be, (3)(a), does not apply to R—

(i) the cancellation period, or,

(ii) if the Commissioners consider that paragraph 10(2)(a) or, as the case may be, (3)(a), applied to R after the cancellation period, the period beginning with the day on which the joint and several liability notice was given to R and ending with the day on which the Commissioners consider that paragraph 10(2)(a) or, as the case may be, (3)(a), ceased to apply to R.

(5) The Commissioners must inform R and P of the result of a notification under sub-paragraph (1) within the period of 30 days beginning with the day on which they are given the notification.

Commencement Information

I9 Sch. 9 para. 13 in force at 10.12.2021 for specified purposes by S.I. 2021/1409, reg. 3

I10 Sch. 9 para. 13 in force at 1.4.2022 in so far as not already in force by S.I. 2021/1409, reg. 4

14 (1) P may apply to the Commissioners to revoke a joint and several liability notice given to R, on the ground that the Commissioners were wrong to consider that paragraph 10(2) or (3) applies to R so far as relating to anything done or not done by, or any intention of, P. U.K.

(2) An application under sub-paragraph (1) must be made within the period of 30 days beginning with the day on which the Commissioners give a copy of the notice to P.

(3) The Commissioners must notify R and P of their decision in response to an application under sub-paragraph (1) within the period of 30 days beginning with the day on which they receive the application.

Commencement Information

I11 Sch. 9 para. 14 in force at 10.12.2021 for specified purposes by S.I. 2021/1409, reg. 3

I12 Sch. 9 para. 14 in force at 1.4.2022 in so far as not already in force by S.I. 2021/1409, reg. 4

15 (1) The Commissioners may by regulations make further provision about— U.K.

(a) notifications for the purposes of paragraph 13(1);

(b) applications for the purposes of paragraph 14(1).

(2) The regulations may (among other things) make provision about information that must be supplied as part of the notification or application.

Commencement Information

I13 Sch. 9 para. 15 in force at 10.12.2021 for specified purposes by S.I. 2021/1409, reg. 3

I14 Sch. 9 para. 15 in force at 1.4.2022 in so far as not already in force by S.I. 2021/1409, reg. 4

Assessments of liability U.K.

16 (1) Where P is liable to pay an amount of plastic packaging tax, the Commissioners may assess that R is liable to pay an amount equal to or less than the amount due from P. U.K.

(2) Where such an assessment is made, the Commissioners must notify R of—

(a) the amount due from P;

(b) the amount assessed as due from R;

(c) how the Commissioners assessed the amount due from R;

(d) the date by which payment must be made;

(e) how payment must be made;

(f) how late payment interest will accrue if R does not make the payment by the date on which it is due and payable.

(3) The amount assessed as due from R must be an amount which the Commissioners consider just and reasonable, having regard in particular to—

(a) their reasons for considering that paragraph 10(2) or (3) applies to R, and

(b) the requirement mentioned in paragraph 13(3) (requirement to treat R as knowingly involved in P's failure to pay tax).

(4) The Commissioners must publish guidance on the matters which they will take into account when determining whether an amount is just and reasonable.

(5) The date by which payment must be made may not be before the end of the period of 30 days beginning with the day on which R is notified in accordance with sub-paragraph (2).

(6) An amount may be assessed and notified to R even if R has made a notification under paragraph 13(1) (and the Commissioners must repay any amount that is subsequently found to have been overpaid).

Commencement Information

I15 Sch. 9 para. 16 in force at 10.12.2021 for specified purposes by S.I. 2021/1409, reg. 3

I16 Sch. 9 para. 16 in force at 1.4.2022 in so far as not already in force by S.I. 2021/1409, reg. 4

Adjustments U.K.

17 (1) Where an assessment to P is withdrawn or reduced, or P's liability in respect of plastic packaging tax is otherwise adjusted, the Commissioners may determine that R's liability is to be cancelled or reduced, or otherwise adjusted, in whatever way they consider just and reasonable, having regard in particular to their reasons for considering that paragraph 10(2) or (3) applies to R. U.K.

(2) If the Commissioners decide to reduce or cancel the amount which R is liable to pay, or make any other adjustment to the assessment to R, they must, within the period of 30 days beginning with the day on which they make their decision—

(a) inform R of the new amount which R is liable to pay (if any), and

(b) repay any amount which R has paid in excess of the new amount.

Commencement Information

I17 Sch. 9 para. 17 in force at 10.12.2021 for specified purposes by S.I. 2021/1409, reg. 3

I18 Sch. 9 para. 17 in force at 1.4.2022 in so far as not already in force by S.I. 2021/1409, reg. 4

Limitation on assessments U.K.

18 U.K. R may not be notified of any assessment under paragraph 16(2) or of any increase in an assessment under paragraph 4(2) of Schedule 10 in respect of an amount after the end of the period of 2 years beginning with—

(a) the day after the last day of the accounting period by reference to which P was liable to pay the amount, or, if later,

(b) the day on which a court or tribunal finally determines that P is liable to pay the amount.

Commencement Information

I19 Sch. 9 para. 18 in force at 10.12.2021 for specified purposes by S.I. 2021/1409, reg. 3

I20 Sch. 9 para. 18 in force at 1.4.2022 in so far as not already in force by S.I. 2021/1409, reg. 4

No double payment U.K.

19 U.K. R may not be required to pay plastic packaging tax if or to the extent that P has paid it (and vice versa).

Commencement Information

I21 Sch. 9 para. 19 in force at 10.12.2021 for specified purposes by S.I. 2021/1409, reg. 3

I22 Sch. 9 para. 19 in force at 1.4.2022 in so far as not already in force by S.I. 2021/1409, reg. 4