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HMRC internal manual

Debt Management and Banking Manual

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

International Debt Unit, Mard team referrals {#}

Where:

  • another member state has asked the UK to recover a tax or duty debt owed to them by a debtor in the UK
  • we have been unable to obtain payment from the debtor
  • bankruptcy, sequestration or insolvency action has been determined as the next appropriate enforcement action

the case will be referred to you for action. Ownership of the debt(This content has been withheld because of exemptions in the Freedom of Information Act 2000) will also be transferred to you (This content has been withheld because of exemptions in the Freedom of Information Act 2000) .

Take bankruptcy/insolvency action, using the same procedures as you would for an equivalent UK debt. Provide the MARD team with regular updates on the progress of the case.

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:

  • advise the debtor that the agreement is acceptable as per the normal rules
  • notify the International Debt Unit, MARD team of the details of the proposal
  • transfer ownership of the (This content has been withheld because of exemptions in the Freedom of Information Act 2000) record back to the International Debt Unit, MARD team to monitor the case to ensure the debtor does not default.
     

Debtor pays

Payments will normally be made direct to the Accounts Office Shipley who will then allocate the payment to the charge(This content has been withheld because of exemptions in the Freedom of Information Act 2000) .

If payment is made in full, including UK enforcement fees and costs, transfer ownership of the (This content has been withheld because of exemptions in the Freedom of Information Act 2000) record back to the International Debt Unit, MARD team and close your case.

Where it is only possible to secure payment from the debtor for the debt alone, UK enforcement fees and costs should be deducted from any payments recovered. The balance should then be set off against the other member state’s debt.

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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.