02/09/08 - Single Payment Scheme 2007 Modulation Refund Payments
In accordance with EU regulations, RPA is in the process of making modulation refund payments in respect of the 2007 Single Payment Scheme and associated schemes – Area Payment for Nuts, Protein Crop Premium and Aid for Energy Crops (EU direct payments).
EU modulation of 5% is automatically deducted from all EU direct payments made to farmers. Member States are then required to refund this money to farmers in respect of the first €5,000 of direct payment made in the Scheme year.
EU regulations also stipulate the total value of these refunds must be made within a national ceiling. When the national ceiling is breached (as is the case with UK) a reduction must be applied to all refunds. Once this reduction is taken into account, the total amount to be refunded in England is £11.98 million. Inevitably, given that a substantial number of SPS payments were for small amounts, as last year the associated modulation refunds will be very small.
These refund payments have been calculated as follows:
- If the total amount received under 2007 direct aid schemes was over €5,000 (£3,484.00) a 7.34% scale back will be applied. This means that the refund will be €5,000 x 5% = €250, less 7.34% scale back, and results in a repayment of €231.65 (£161.41).
- If the total payment received is below €5,000 (£3,484.00), the refund will be the value of the claim x 5%, less 7.34% scale back.
The amount of modulation refund will be shown on the remittance advice sent separately at the time of the refund. The first refunds have already been made with the other refunds being made in the next few weeks.
Please note - after 15 October 2008 RPA will not be able to pay you by cheque and if we do
not hold your bank account details we will not be able to pay you at all. If you currently receive RPA payments by cheque and you have not yet sent us your bank details:
You should:
- Complete your bank details on the SP12 registration form in your SPS 2008 application pack, or on the CReg17 form sent to you, sign the form and return it to us.
If you do not have a form you can request one by:
- Phoning the RPA Customer Service Centre (CSC) on 0845 603 7777 and selecting customer registration
- E-mailing csc@rpa.gsi.gov.uk
- Downloading one from www.rpa.gov.uk (customer registration section).
Page published: 2 September 2008
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