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HMRC internal manual

Debt Management and Banking Manual

Debt and return pursuit: Aggregate levy: Who is liable?: Representatives of the registered person

Tax representatives

Customers not resident in the UK are liable to pay levy due. To secure payment of levydue, we may require the taxable person to appoint a tax representative who is liablejointly and severally with the taxable person for levy due.

Section 34 (3) of the Finance Act 2000, provides:

“A person who is or has been the tax representative of a non-resident taxpayer shallbe personally liable –

(a) in respect of any failure while he is or was the non-resident taxpayer’s taxrepresentative to secure compliance with, or the discharge of, any obligation or liabilityto which subsection (2) above applies, and

(b) in respect of anything done in the course of, or for purposes connected with, actingon the non-resident taxpayer’s behalf,

as if the obligations and liabilities to which subsection (2) applies were imposed jointlyand severally on the tax representative and the non-resident taxpayer.”

Representatives of incapacitated persons (death, illness or insolvency)

The Commissioners may, for AL purposes, direct a person to be the taxable person underRegulation 36 of the Aggregates Levy (General) Regulations 2002 [S.I. 2002/761].

Such individuals are liable to render returns as the taxable person until such time as westop treating him as the taxable person.

This person is liable to pay the tax due only to the extent of the assets of theincapacitated person over which he has control (Regulation 36 (2) of the Regulations).

Our approach depends on the circumstances in which the representative is appointed.

Recovery policy in respect of representatives

As a matter of policy, take recovery action against a tax representative only whenaction against the registered person is exhausted and a debt for which the representativeis liable remains unpaid. Verify the representative’s status by reference to a lettersigned by the authorised officer confirming his official representative status.

It is good practice to notify a representative of his liability under the Act when westart proceedings against the registered person.

The provision for mutual assistance between Member States of the European Union in therecovery of tax debts does not currently extend to the collection of AL.