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HMRC internal manual

Debt Management and Banking Manual

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HM Revenue & Customs
Updated
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Debt and return pursuit: foreign cases: Mutual Assistance in the Recovery of Debt (MARD) (EU States): requests for recovery received from other member states - MARD team action

Initial action

Review the case to check for suitability as per (This content has been withheld because of exemptions in the Freedom of Information Act 2000) .

Request does not contain all required information

If the request doesn’t contain all the information you need in order to action it:

  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000) acknowledge its receipt
  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000) ask the applicant member state to provide the missing information
  • send the updated e-form to the applicant member state within seven calendar days of the receipt of the request
  • set up a new case(This content has been withheld because of exemptions in the Freedom of Information Act 2000) .

On receipt of the additional information, send an updated e-form to the applicant member state to acknowledge the receipt of the additional information and deal with as below - ‘Request accepted’.

If the applicant member state can’t provide the missing information, they will send you an updated e-form and explain why it can’t be provided. If you can action the request without this additional information, deal with as below - ‘Request accepted’. If you are unable to action the request without this additional information, deal with as below - ‘Request rejected’.

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Request rejected

If the request is not accepted:

  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000) acknowledge its receipt
  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000) explain why you can’t deal with the request
  • send the updated e-form to the applicant member state within seven calendar days of the receipt of the request
  • close your case.

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Request accepted

If the request is accepted:

  • acknowledge the receipt of the request within seven calendar days of the receipt (This content has been withheld because of exemptions in the Freedom of Information Act 2000) (This content has been withheld because of exemptions in the Freedom of Information Act 2000) returning the updated e-form to the applicant member state
  • set up a new case(This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • check HMRC systems to confirm the debtor is at the address mentioned in the request.

Debtor’s address confirmed

  • Send a completed MARD2 SEES letter and the Uniform Instrument Permitting Enforcement to the debtor.
  • BF for one month to await payment.

Debtor’s address different to that provided by applicant state

If you confirm a UK address for the debtor, but this differs from the address shown on the request for recovery:

  • if the address provided by the other member state is in the address history, send a completed MARD2A SEES letter and the Uniform Instrument Permitting Enforcement to the debtor at the latest address held by HMRC; tell the other member state of the new address when you acknowledge the case
  • if the address provided by the other member state is not in the address history but is a valid UK address, send a completed MARD2A SEES letter and the Uniform Instrument Permitting Enforcement to the debtor at both addresses.

BF for one month to await payment.

Debtor not found

If there is no record of the debtor on our systems, but the address provided by the applicant member state is a valid UK address, send a completed MARD2A SEES letter and the Uniform Instrument Permitting Enforcement to the debtor at the address provided by the applicant state.

Debtor has no UK assets

If your information indicates that the debtor has no UK assets that could be used to satisfy the debt:

  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000) explain why the debt could not be recovered
  • return the updated e-form to the applicant member state
  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • close your case.

Debtor not resident

If the debtor is not resident in the UK, but you have information to indicate that they have UK assets that could be used to satisfy the debt, deal with the case in accordance with DMBM560165.

Debtor due a UK tax or duty refund

If you have information to indicate that the debtor is due a refund from HMRC, consider whether the refund can be set off against the debt as per the normal guidance within DMBM700000. You cannot set off the refund against the debt if HMRC don’t manage the equivalent tax or duty in the UK.

If the refund is set off against the debt, deal with as below ‘Debtor pays the debt in full’ or ‘Debtor makes a partial payment’, as appropriate.

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Debtor requests a copy of the Uniform Instrument Permitting Enforcement in a different EU language

A debtor may ask for a copy of the Uniform Instrument Permitting Enforcement to be sent to them in another official language of the European Union. However, any such request must be made within seven days of receipt of the original UIPE. If you receive such a request within the seven-day period:

  • open the original e-form(This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • change the language to the language requested
  • print the form in the language chosen
  • send it to the debtor.

Providing a copy of the Uniform Instrument Permitting Enforcement to the debtor in another language of the European Union doesn’t affect the validity of the recovery measures already taken on the basis of the original Uniform Instrument Permitting Enforcement.

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Debtor pays the debt in full

If the debtor pays the debt in full:

  • update the(This content has been withheld because of exemptions in the Freedom of Information Act 2000) details of the payment
  • arrange for the payment to be transferred to the applicant member state(This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • complete the relevant part(This content has been withheld because of exemptions in the Freedom of Information Act 2000) of the e-form
  • send the updated e-form to the applicant state(This content has been withheld because of exemptions in the Freedom of Information Act 2000) once you have received confirmation from Finance that the payment has been successfully transferred to them
  • close the case.

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Debtor requests time to pay

If the debtor requests time to pay, deal with as per the guidance in DMBM800000.

If the offer would not be acceptable if it were a UK debt, reject the request as per the normal guidelines.

If the offer would be acceptable if it were a UK debt:

  • update the(This content has been withheld because of exemptions in the Freedom of Information Act 2000) time to pay details
  • advise the debtor that the agreement is acceptable as per the normal rules
  • complete the relevant part(This content has been withheld because of exemptions in the Freedom of Information Act 2000) of the e-form
  • send the updated e-form to the applicant state(This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • monitor the case to ensure the debtor doesn’t default. If the debtor defaults, follow the normal TTP process for defaulted time to pay.

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Debtor makes a partial payment

If the debtor pays part of the debt:

  • write to the debtor requesting the remaining payment plus any additional interest due
  • update the(This content has been withheld because of exemptions in the Freedom of Information Act 2000) details of the payment
  • arrange for the payment to be transferred to the applicant member state(This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • complete the relevant part(This content has been withheld because of exemptions in the Freedom of Information Act 2000) of the e-form
  • send the updated e-form to the applicant state(This content has been withheld because of exemptions in the Freedom of Information Act 2000) once you have received confirmation from Finance that the payment has been successfully transferred to them
  • BF the file for further payment.

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(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)

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Debtor claims they can’t pay the debt

If you are satisfied that they can’t pay:

  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000) (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • send the updated e-form to the applicant state(This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • close the case.

If you are not satisfied that they can’t pay:

  • advise the debtor that payment must be made immediately
  • if payment is not made, deal with as below - ‘Debtor doesn’t respond or payment is not received’.

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Debtor doesn’t respond or payment is not received

If you are satisfied that the debtor is at the stated address, consider the next appropriate action to recover the debt.

Referring the debt for enforcement action

Before you refer the debt to the relevant office for the next enforcement action, issue the appropriate IDMS10 SEES enforcement warning letter and enforcement fact sheet to the debtor.

If the debtor fails to pay or respond to the warning letter, refer the debt to the relevant Enforcement Office for action using the agreed referral process.

If the referral is to Field Force, do not transfer ownership of the (This content has been withheld because of exemptions in the Freedom of Information Act 2000) record.

If the referral is to another enforcement team, transfer ownership of the debt to them (This content has been withheld because of exemptions in the Freedom of Information Act 2000) .

Referring the debt for insolvency action in Northern Ireland

Before you refer the debt to the relevant office, issue the appropriate SEES IWL, a copy of your initial demand letter, the UIPE and the relevant enforcement fact sheet to the debtor.

If the debtor fails to pay or respond to the warning letter, or if their response indicates that insolvency remains appropriate, refer the debt to EIS Edinburgh for action using the EIS referral process. Transfer ownership of the debt to them (This content has been withheld because of exemptions in the Freedom of Information Act 2000)

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Debtor disputes the debt

If the debtor disputes their liability to or the accuracy of the debt, deal with their dispute as per the guidance in DMBM560160.

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Withdrawal of request

A member state may withdraw a request for assistance at any time by sending an updated e-form(This content has been withheld because of exemptions in the Freedom of Information Act 2000) . On receipt of such a notification:

  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • close the case.