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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 sent to other member states - International Debt Unit, MARD team action

 

Review the case to check for suitability

On receipt of a referral from another Debt Management team, review the papers to confirm that:

  • the debt has been correctly referred to your team in accordance with the guidance at DMBM560030
  • the debt is a UK tax or duty debt (or associated interest or penalty) covered by the agreement; see DMBM560015 for more information about the taxes and duties covered by the agreement
  • the monetary and time limits outlined in DMBM560040 are met
  • you have information to indicate that the debtor lives in or has assets in the other member state.
     

If UK recovery action has not been exhausted, the circumstances at DMBM560100 apply.

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Sending a request

If the case is suitable:

  • prepare the request for recovery and Uniform Instrument Permitting Enforcement e-form completing all mandatory fields(This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • send the e-form in XML format to the other member state(This content has been withheld because of exemptions in the Freedom of Information Act 2000) using the appropriate(This content has been withheld because of exemptions in the Freedom of Information Act 2000) mailbox for the debt
  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • note (This content has been withheld because of exemptions in the Freedom of Information Act 2000) the action you have taken
  • BF the case for seven calendar days.
     

If you haven’t received an acknowledgement from the requested member state when the BF expires, send an updated e-form(This content has been withheld because of exemptions in the Freedom of Information Act 2000) to ask for an update.

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Request accepted

The requested member state will send you an updated e-form(This content has been withheld because of exemptions in the Freedom of Information Act 2000) to acknowledge its receipt. On receipt of the acknowledgement, BF the case for six months.
 

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Request does not contain all required information

If the request does not contain all the information the requested member state needs in order to action it, they will send you an updated e-form within seven calendar days. They will:

  • (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 you to provide the missing information.
     

Missing information available

If you can provide the missing information, send an updated e-form to the requested member state to provide the missing information.(This content has been withheld because of exemptions in the Freedom of Information Act 2000)
 

Missing information not available

If you are not able to provide the missing information, send an updated e-form to the requested member state and explain why the missing information can’t be provided(This content has been withheld because of exemptions in the Freedom of Information Act 2000) .
 

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Request rejected

If the requested member state rejects your request for assistance, they will send you an updated e-form within seven calendar days. They will:

  • (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 they can’t deal with the request.
     

On receipt, consider the next appropriate action, for instance any other recovery options or write off.

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Debt recovered in full

If the other member state successfully recovers the debt in full they will:

  • send you an updated e-form(This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • send the payment to the HMRC bank account details given by you on the request form, quoting the UK reference for payment.
     

On receipt, the payment will be automatically set off against the taxpayer’s account, unless either:

  • the debt is an EECD debt
  • the correct payment reference is not quoted.
     

If payment has not been automatically allocated to the debt, arrange for the payment to be manually allocated against the debt.

Once the payment has been allocated to the debt,(This content has been withheld because of exemptions in the Freedom of Information Act 2000) close your case.

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Debt partly recovered

If the other member state successfully recovers part of the debt they will:

  • send you an updated e-form(This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • tell you if further recovery action will be taken for the balance
  • send the payment to the HMRC bank account details given by you on the request form, quoting the UK reference for payment.
     

On receipt, the payment will be automatically set off against the taxpayer’s account, unless either:

  • the debt is an EECD debt
  • the correct payment reference is not quoted.
     

If payment has not been automatically allocated to the debt, arrange for the payment to be manually allocated against the debt.

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

If no further recovery action is possible:

  • send an updated e-form(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.
     

If further recovery action is possible, monitor the case for receipt of the next payment.

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Debtor pays UK direct

If the debtor pays the UK direct, you must tell the other member state immediately.

If the debt is paid in full:

  • send an updated e-form to the other 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.
     

If the payment is only a part payment:

  • send an updated e-form to the other state(This content has been withheld because of exemptions in the Freedom of Information Act 2000) ; do not update the Uniform Instrument Permitting Enforcement or the debt value shown on the request form
  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • BF the case for six months.
     

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No recovery action possible

If the other member state is unsuccessful in recovering the debt they will send you an updated e-form(This content has been withheld because of exemptions in the Freedom of Information Act 2000) .

On receipt:

  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • consider the next appropriate action; for instance, any other recovery options(This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • close case.
     

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Debtor disputes the debt

If the debtor disputes the debt or the Uniform Instrument Permitting Enforcement:

  • obtain the reasons for the dispute in writing
  • if the dispute is about the debt, send a copy of the letter to the HMRC office(This content has been withheld because of exemptions in the Freedom of Information Act 2000) who will deal with the dispute, referring the debt back to them(This content has been withheld because of exemptions in the Freedom of Information Act 2000) if appropriate; ask them to update you when the outcome of the dispute is known and to send you a copy of the letter they send to the debtor
  • if the debt is about the Uniform Instrument Permitting Enforcement, the dispute must be considered by the International Debt Unit, MARD team
  • send an updated e-form to the requested state(This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • BF the file for two months to await the outcome of the dispute.
     

Dispute accepted - debt cancelled in full

If you are advised that the dispute has been accepted in full and none of the debt is now due:

  • notify the other member state by sending an updated e-form to them(This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • close the case.
     

Dispute accepted - debt amended

If you are advised that the dispute has been accepted and the result is that only part of the debt is now due:

  • update the e-form and Uniform Instrument Permitting Enforcement to show the revised debt
  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • send the updated e-form and Uniform Instrument Permitting Enforcement to the requested member state
  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • BF for six months.
     

Dispute rejected in full

If you are advised that the dispute has been rejected in full and that the debt is still due:

  • notify the other member state by sending an updated e-form to them(This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • note(This content has been withheld because of exemptions in the Freedom of Information Act 2000) the outcome of the dispute
  • BF for six months.
     

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Withdrawal of request

You may withdraw your request for assistance at any time. To do so, send an updated e-form to the requested member state(This content has been withheld because of exemptions in the Freedom of Information Act 2000) .