What is the time limit for recovering underpayments or overpayments of HGV road user levy?

Schedule 2, paragraph 4 of the HGV Road User Levy Act 2013 establishes a strict 12-month time limit for recovering both underpayments and overpayments. The 12-month period runs from the end of the period for which the levy was originally paid, not from the date of payment itself.

When does the 12-month limitation period for HGV levy recovery begin?

The 12-month clock does not start from the date the payment was made. Instead, it begins at the end of the period for which the levy was paid. For example, if the levy covered a period ending on 31 March 2024, any recovery proceedings must be commenced on or before 31 March 2025.

What happens if the 12-month deadline for HGV levy recovery is missed?

Once the 12-month window has closed, neither the government nor the taxpayer may bring proceedings to recover the money, regardless of the amount involved. The claim becomes time-barred, so levy reconciliation and review should be carried out well within this period to identify discrepancies.

Does the 12-month time limit apply equally to the Secretary of State and to taxpayers?

Yes, the 12-month limitation period applies equally. The Secretary of State must bring any claim for underpaid levy within 12 months of the end of the levy period, and any person who has overpaid levy must likewise claim a refund within the same deadline or lose the right to recover.

HGV Road User Levy Act 2013 section Sch 2 para 4

Time limit for recovery of underpayments and overpayments

Schedule 2, paragraph 4 establishes a strict 12-month time limit within which either the government or the taxpayer may seek to recover incorrect levy payments.

A 12-month time limit applies to the recovery of both underpayments and overpayments of HGV road user levy.
The 12-month period runs from the end of the period for which the levy was originally paid.
The Secretary of State must bring any claim for underpaid levy within this deadline.
Any person who has overpaid levy must likewise claim a refund within this deadline.

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