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HMRC internal manual

Debt Management and Banking Manual

From
HM Revenue & Customs
Updated
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Debt and return pursuit: Foreign cases: Mutual Assistance in the Recovery of Debt (MARD) (Social Security Debts): requests for recovery sent to other countries

Who will make the request?

A request to another country for recovery of a UK Child Benefit debt or a UK Guardians Allowance debt will be made by DM Birmingham.

A request to another country for recovery of a UK Child Tax Credit debt or UK NICs debt will be made by the International Debt Unit, MARD team.

Review the case to check for suitability

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

  • the debt has been correctly referred to your team in accordance with the guidance at DMBM560535
  • the debt is a UK family benefit or NICs debt
  • the debt is not in dispute or the subject of appeal; if recovery action has already commenced and the debt is then disputed, you should ask the other country to suspend recovery action until the debt or revised debt is confirmed
  • the monetary and time limits outlined in DMBM560540 are met
  • you have information to indicate that the debtor lives in or has assets in the other country
  • the debt is not more than five years old
  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000) .

Sending a request

If the case is suitable:

  • prepare a request for recovery form R017 in accordance with the EU guidelines
  • prepare the certificate of debt – the UK Instrument Permitting Enforcement
  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
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  • send the R017, together with a certificate of debt to the requested country by post
  • note IDMS or OPREC with the action you have taken
  • BF the case for six months.

Request rejected

If the other country rejects your request for assistance, they will send you an R018 or equivalent and explain why they can’t deal with the request.

On receipt, 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) .

Debt recovered in full

If the other country successfully recovers the debt in full they will:

  • notify you on an R018 or equivalent
  • send the payment to the HMRC bank account details given by you on the request form, quoting the UK reference for payment
  • send you an R004 or equivalent when they transfer the payment to you.

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.

Debt partly recovered

If the other country successfully recovers part of the debt they will:

  • notify you on an R018 or equivalent; they will also 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
  • send you an R004 or equivalent when they transfer the payment to you.

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

If no further recovery action is possible, close your case.

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

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

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No recovery action possible

If the other country is unsuccessful in recovering the debt they will send you an R018 or equivalent.

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 your case.

Debtor disputes debt

UK debt disputed with HMRC

If the debtor disputes the debt:

  • obtain the reasons for the dispute in writing
  • notify the other country on an R019 asking them to suspend recovery action until further notice
  • forward a copy of the dispute to the decision maker to review; 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
  • BF the file for two months to await the outcome of the dispute.

UK debt disputed with the other country {.filledcircle}

If you are told about the dispute by the other country on an R019 or equivalent, rather than by the debtor direct, you need to be satisfied that the debtor has indeed disputed the debt with HMRC.

If the decision maker is considering the dispute and the other country has not already suspended their recovery action, send them an R033 and ask them to suspend further recovery action until the outcome of the dispute is known.

If HMRC has not received a dispute from the debtor and investigations suggest that no dispute will be made, send an R034 to the other country to advise them that no dispute has been received. Ask them continue with their action to recover the debt.

Dispute accepted and 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 country on an R034
  • close the case.

Dispute accepted and 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:

  • notify the other country on an R034
  • provide them with a revised debt breakdown
  • (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:

  • send an R034 to the other country to advise them that the dispute has been rejected
  • ask them to continue with their action to recover the debt
  • note your records with the outcome of the dispute
  • BF for six months.

Enforcement measures taken in the other country disputed

If the debtor disputes the enforcement measures being taken by the other country, they must do so to that country. The other country will tell you about the dispute and the action they will take on an R019 or equivalent.

Once the dispute has been settled, they will notify you of the outcome on an R034 or equivalent.

Debt cancelled

If the debt is cancelled for any reason other than as a result of a dispute, notify the other country on an R025 and ask them to cease their recovery action.

Debt reduced

If the debt is reduced for any reason other than as a result of a dispute notify the other country on an R025 and:

  • provide them with a revised debt breakdown
  • ask them to continue with their action to recover the revised debt figure.