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HMRC internal manual

Debt Management and Banking Manual

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HM Revenue & Customs
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Annual Balance: Debt Pursuit Offices: Law Costs Agreement: How to account for law costs

 
 
 
 

An Officer grade or above should be nominated to agree the law costs.

Distraint Costs

To agree Distraint Costs

  • balance Book 27(B) and Book 27(NB) separately
  • calculate outstanding amounts by adding columns 5, 6, and 7 together and then deducting columns 9 and 13
  • enter the amount in column 14
  • total each column
  • add together the totals for columns 9, 10, 11, 13 and 14 and deduct the total of column 5
  • add together the totals for columns 16 and 17
  • make sure that

    • columns 9, 10, 11 and 13 less column 5 equals the total of columns 16 and 17
    • columns 6, 7, 10 and 11 equals the total of columns 16 and 17.

Uncleared cases

  • enter each uncleared case under the original consecutive number in a new Book 27
  • enter the amounts from column 17 of the closing Book 27 into column 6 of the new book
  • make sure that the totals agree.

Completion of form 45K(Costs)

To complete and agree 45K(Costs), see DMBM231230.

Summary Proceedings

To agree Summary proceedings

  • calculate outstanding amounts by adding Book 28 columns 6, 8, 9 and 10 together and then deducting columns 12, 13, 14, 15and 16
  • enter the amount in column 17
  • total each column in book 28
  • add together the totals of column 6, 8, 9 and 10
  • add together the totals of column 12, 13, 14, 15 (England and Wales only), 16 and 17
  • make sure the two totals agree
  • machine list the totals of forms C17A and agree the total to the total for column 10
  • make sure that the total of column 12 agrees the CAROL final Account Accumulation figure.

Uncleared cases

  • Enter each uncleared case, under the original consecutive number in Book 28 for the new Account
  • enter the amounts from column 17 of the closing Book 28 into column 6 of the new book
  • make sure that the totals agree.

Completion of form 45 K(Costs)

To complete and agree 45K(Costs), see DMBM231220.

County Court Proceedings

To agree County Court proceedings

  • calculate any amount outstanding by adding Book 28 columns 6, 8, 9 and 10 together and then deducting columns 12, 13, 14, 15 and 16
  • enter the amount in column 17
  • total each column in book 28
  • add together the totals of

    • column 6, 8, 9 and 10
    • column 12, 13, 14, 15, 16 and 17 (England and Wales only)
  • make sure the two totals agree
  • machine list the totals of forms C17A and agree the total to the total of column 10
  • make sure that the total of column 12 agrees the CAROL final Account Accumulation figure.

Uncleared cases

  • enter each uncleared case under the original consecutive number in Book 28 for the new Account
  • enter the amounts from column 17 of the closing Book 28 into column 6 of the new book
  • make sure that the totals agree.

Completion of form 45K(Costs)

To complete and agree 45K(Costs) see DMBM231220.