On 21 May 2021 we froze all Environmental Bodies (EBs) who had failed to complete one, or more, Statutory Annual Return. The list of frozen EBs was initially published on 24 May 2021. Following the return to compliance of several EBs we have published an updated list which is available on the right hand side of this page and on the Frozen EB page of the ENTRUST website. As at 2 June 2021 there are 62 frozen EBs – compared to 195 at this time last year.
It is a statutory requirement for all EBs to submit a Statutory Annual Return (Form 4) by 28 April each year. In April 2015, HM Revenue & Customs (HMRC) addressed this issue by approving a condition which 'freezes' the status of those EBs who fail to submit their Statutory Annual Return by 28 April. The condition can be read on the Frozen page of our website.
Once an EB is frozen it cannot receive further funds, or spend funds until all outstanding Annual Returns are submitted. The frozen status will be removed once all outstanding Annual Returns have been received. EBs who transfer money to a 'frozen' EB will also be deemed to be non-compliant and will be subject to enforcement action. The list is updated regularly and should be checked every time before transferring money to another EB in order to avoid non-compliance with the Landfill Tax Regulations (1996) (Regulations).
We understand that the COVID-19 pandemic has caused difficulties for many organisations and we would like to thank EBs who have completed their Statutory Annual Return this year. As reporting obligations are set out in the Regulations they cannot be readily changed. Therefore, the Statutory Annual Return (Form 4) deadline of 28 April 2021 remained in place for the 2020/2021 returns. You can read ENTRUST’s guidance relating to the impact of COVID-19 on the LCF here.
Where EBs are experiencing problems, or need help to complete their Statutory Annual Return they should email us at Helpline@entrust.org.uk and we will help them to complete their reporting obligations and return to compliance. The frozen status will be removed once all outstanding Annual Returns have been received.
Frozen for failure to complete two Annual Returns
Those EBs who have been on the frozen list for not submitting their Statutory Annual Return for two years will be referred to the ENTRUST Board for consideration of forcible revocation by HMRC, in line with our Enforcement Framework.