EAIG7100 - Recovering excess repayments made by HMRC: recovery assessments for excess repayments
Recovery assessments are assessments which seek to recover refunds of excise duty which have been wrongly paid or credited to a business.
Where a revenue trader or a person has paid excise duty to HMRC, which was not due to them, then HMRC are liable to repay that amount of duty.
»Ê¹ÚÌåÓýapp right to claim excise duty overpaid is provided for by section 137A of the Customs and Excise Management Act 1979.
In addition Schedule 3 of the 2001 Finance Act extends that right to include situations where a person has paid excise duty, as a direct result of “Official error�.
»Ê¹ÚÌåÓýapp need to make recovery assessments can arise because a trader has previously made a claim to repayment -under either of the two provisions- which has been accepted and processed by HMRC but which is subsequently found to be an incorrect claim.
Or, recovery assessment action may be required following the release of a binding court judgement in which the interpretation of the law is ultimately decided in our favour. See EAIG8000.