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Levies for Cereals and Oilseeds 2008-09

The Agriculture and Horticulture Development Board (AHDB) Statutory Instrument (SI), completed its Parliamentary processes on 29 February 2008. The order allows that the collection of levies may be delegated to the relevant sector organisation. HGCA will collect levies for AHDB in respect of the Cereals and Oilseeds sectors.

The SI is available from:
http://www.opsi.gov.uk/si/si2008/uksi_20080576_en_1

Returns

Once registered, returns will be sent to you for completion either quarterly, annually, or half yearly for Oilseeds only, depending upon the tonnages of home-grown cereals or oilseeds that you either purchase from growers and/or process during a 12 month period (1 April - 31 March).

These returns must be completed and returned to HGCA within 28 days of the end of the period to which they relate. If you have not completed any leviable transaction an NIL return is required. Please do NOT send payment with returns.

Estimates

If any person liable to pay levy fails to submit a return to AHDB-HGCA by the due date, AHDB-HGCA may estimate the amount that should have been notified. If the person fails to make a return within 28 days of notification of the estimate they become liable to pay levy on that estimate.

Invoices

On receipt of the completed returns, HGCA will send to you an invoice for the amount due. Payment must be made within 49 days of the end of the period covered by the return. Please pass this information through to you accounts department.

Rates of Levy
 The liability to the AHDB levies for Cereals and Oilseeds is explained in the "SI" Part 3 sections 9,10,11 and 12.

The rates of levy per tonne at the standard rate are:-

Cereal Grower 40p per tonne (plus VAT)
Cereal Buyer 3.3p per tonne (plus VAT)
Cereals Processor (animal feedingstuffs) 4p per tonne (plus VAT)
Cereals Processor (non animal feedingstuffs) 8.25p per tonne (plus VAT)
Oilseeds Levy 65p per tonne (plus VAT)

In the event of late payment an increased rate of levy is payable the rates are:-

Cereal Grower 44p per tonne (plus VAT)
Cereal Buyer 3.63p per tonne (plus VAT)
Cereals Processor (animal feedingstuffs) 4.4p per tonne (plus VAT)
Cereals Processor (non animal feedingstuffs) 9.075p per tonne (plus VAT)
Oilseeds Levy 71.5p per tonne (plus VAT)

The Cereal Levy is in two parts, the Grower levy and the Buyer Levy; when they buy cereals the buyer must deduct the grower levy from the price they pay, and hold it on trust for the AHDB, they may then take 5% of the combined grower levy and buyer levy as commission
and then pay the remainder of the levy to AHDB-HGCA.

The Oilseeds Levy is recoverable in full by the buyer from the grower.

Note:
The late payment portion of the Cereals Grower and Oilseeds
levy is not recoverable by the buyer from the grower as the grower
will have paid on time by deduction.

Definitions:
The AHDB Guidance note issued by Defra states that "Agent intermediaries and financial intermediaries are considered to be "principals" in any contract to purchase and are therefore buyers for the purposes of this Order".

Enquiries

Enquiries about the Scheme should be directed to:

Jane Rigby
AHDB- HGCA
Stoneleigh Park,
Kenilworth,
Warwickshire,
CV8 2TL
Tel:   0247 669 2051
DD:  0247 647 8605
Fax:  02476 478906
Email: levy@ahdb.org.uk

Enquiries regarding the payment of invoices should be directed to Jane Rigby at the above address, or by calling 0247 647 8605

This page was last updated October 2009

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