CW Energy LLP

EPL instalment interest

Worth checking the position 

When EPL was introduced with effect from May 2022 there was some confusion as to how exactly the regime would apply. The point that appears to have been missed when the legislation was introduced was that the status of a company for the purposes of the instalment regime is determined solely by the CT profits position of the company. Companies with significant CT trading losses remain outside the instalment regime until those losses are fully utilised (assuming no other significant profits). HMRC confirmed the position shortly after the first instalment payment date for a December 2022 year end company. 

However, a number of companies did have an obligation to pay EPL under the instalment regime. The first instalment for a 31 December 2022 year end company was due on the 9th of December 2022. It appears however that the HMRC system currently assumes that EPL instalments for this year are payable at the same time as the normal CT instalments. HMRC have now confirmed that they are aware of this anomaly. 

As a result, companies may have received demands for interest which is not due or indeed received less repayment supplement than they are entitled to.

Companies may wish to check the position to see if they are affected. CWE would be pleased to assist with such checks.