Paul Winfrow (PW) Chairman UKOITC
Augustin Rivara (AR), UKOITC
Adam Cran (AC), UKOITC
Phil Greatrex (PG), Brindex
Chris Waterton (CW), Centrica
Peter Gunn (PG), OGIA
Malcolm Phelps (MP)
Mike Crabtree (MC)
Paul Philip (PP)
Diane Williams (DW)
Andrew Parrock (AP)
Ray Casanove (RC)
Alan Tume (AT)
Tony Chanter (TC)
Robert Douglas (RD), HM Treasury
Linda Scott (LS) on behalf of Russell Malloch Local Compliance Glasgow
Jacqui Akinlosotu
Andrew Parrock
Ray Casanove
Alan Tume
MP welcomed everyone to the meeting and following this formal introductions were made.
The minutes of the last meeting held on the 22 January 2008 were agreed.
There were no points arising.
MC said all outstanding issues where draft legislation has not been issued with the Consultation document are not likely to be resolved until June. Oil and Gas are looking at various issues surrounding PRT and gas injection and MC will keep everyone informed of the outcome. MC referred to the 'off licence' issues (the impending cessation of 1st and 2nd round licences) and tax implications of licences ceasing pre-decommissioning. HM Revenue & Customs (HMRC) have confirmed that the end of licence issue will be resolved in due course.
RD discussed the change of use aspect and said that HMRC would be issuing a note shortly.
It was agreed that we need to get right any issues and changes to the North Sea Fiscal regime.
MP reported there had previously been ongoing discussions with industry on how LPG values are calculated. All interested parties have now agreed they would like to move LPGs into Category 1. AP had a letter in draft with suggestions as to how this can be carried forward.
PPW gave an up date on the PRT2 return and the broad conclusion was that as the data would be prepared in any event, there was little saving from abolishing the PRT2. PW said UKOITC would be looking again at simplification issues including the prospect of moving to 12 month accounting. MP said that there was a window of opportunity here to consider opportunities including the 5 per cent provisional allowance. MC suggested that this might also be an opportunity to clear away any redundant legislation.
RD reported on a project under the joint Industry/LBS Partnership Enhancement Programme (PEP) deriving from the review of links with large business. RD is currently awaiting replies to a questionnaire which was sent to industry. PW promised to send an e-mail to remind everyone to complete the questionnaire. RD asked if this information can be sent to him by the end of April 2008.
MP gave an update on the LBS Geographical Restructuring Population Project and confirmed that letters explaining the changes have now been written and sent to all customers. The businesses which are proposed to move to LC Glasgow are now expected to be made by April 2008. RM reported that businesses dealt with in Glasgow with ring-fence profits would find that they had two tax references (retaining the '349' Oil and Gas reference) for a little while to ensure that Ring Fence CT was properly assessed. A permanent fix was expected in the Autumn.LS reported she is waiting for accounts office to put a fix in place to
ensure that interest is calculated correctly for Ring Fence CT. In the meantime,
the 349 oil and gas reference would need to be retained. No problems were
reported in practice.
The customer managers in the Glasgow office for cases retained by or moving
to local compliance are Linda Scott and Russell Malloch.
MP referred to the information given on protective markings for personal data, and discussed the three levels of security rules relating to emails and other security data which need to be followed when sending data. He also explained that up to the restricted level, information could be exchange by email provided that a newly revised protocol was in place. Some CRMs had already arranged this with their customers. MP would forward a copy of the protocol to go to members of rep bodies.
Low risk customers – target 40 per cent
LBS as a whole: 41 per cent
LBS oil and gas: 47 per cent
Older risks – target to clear 70 per cent
LBS as a whole: 71 per cent
LBS oil and gas: 75 per cent
Smaller risks – target to clear 75 per cent
LBS as a whole: 81 per cent
LBS oil and gas: 82 per cent
MP said that he was pleased with the progress made and also thanked everyone for their contribution in working together towards meeting the business targets.
MP said it has been agreed that DW is to look after this year’s annual conference event for LBS Oil and Gas. This is fixed for 5 November 2008. MP asked industry if they could offer nominees to take part in organising the event, and to liaise with DW. Industry expects to discuss nominations shortly.
Industry enquired if a risk based approach to PRT reconciliations would be appropriate. MP said that, while he was sympathetic, in view of the NAO interest in the topic, LBS Oil and Gas would need to talk through with them any revised approach. LBS Oil and Gas would report back.
The next meeting is scheduled to take place on Wednesday 16 July 2008.
