Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Debt Management and Banking Manual

From
HM Revenue & Customs
Updated
, see all updates

Enforcement action: distraint: costs and accounting: scale of distraint costs and fees

Direct taxes

In England and Wales the scale of fees and costs chargeable to the defaulter (and, where appropriate, paid to the bailiff) on, or in connection with, distraint is set out in

  • Statutory Instrument (SI) 1994/236: The Distraint by Collectors (Fees, Costs and Charges) Regulations 1994 and
  • SI1995/2151: The Distraint by Collectors (Fees, Costs and Charges)(Amendment) Regulations 1995.

The present scale is printed on the distraint notice and inventory (form C204).

In Northern Ireland the scale of fees, costs and charges incurred is set out in

  • SI2004/2247: The Distraint by Authorised Officers (Fees Costs and Charges) (Northern Ireland) Regulations 2004.

The scales concur with those applicable to tax and other duties set out in the Schedule to Regulation 3 of the Distraint by Collectors (Fees, Costs & Charges) Regulations 1994.

Indirect taxes

In England, Wales and Northern Ireland the scale of fees and costs chargeable to the defaulter (and, where appropriate, paid to the bailiff) on, or in connection with, distraint is set out in

  • SI1997/1431:Distress for Customs and Excise Duties and other Indirect Tax Regulations 1997.

Direct and indirect taxes

When calculating costs and fees a fraction of £1, of the total amount for which you intend to levy, should be rounded up to the nearest £1.

You will pay costs, fees and charges to the auctioneer monthly, on presentation of an invoice for work done. Add VAT at the appropriate rate where the auctioneer is registered for VAT.

Scale of costs, fees and charges

Type Regulations
   
Levy and possession Costs in accordance with
  • the Schedule to Regulation 3 of the Distraint by Collectors (Fees, Costs and Charges) Regulations 1994
  • Schedule 2(2) & (3) of Regulation 8(1) of the Distress for C&E Duties etc. Regulations 1997.
These regulations include the administrative costs of preparing for removal. Where the auctioneer who removes has not been involved in the levy before then, you may pay a setting up fee.    
  Setting-up You may pay the auctioneer a fee(This content has been withheld because of exemptions in the Freedom of Information Act 2000) where the auctioneer (or representative of the auctioneer’s firm) was not present at the levy. This is a charge against the levy costs and is not recoverable from the debtor separately.
  Appraisal/appraisement Reasonable fees, charges and expenses of the person appraising, as in
  • Schedule (3) to Regulation 3 of the Distraint by Collectors (Fees, Costs and Charges) Regulations 1994
  • Schedule 2(4) of the Distress for C&E Duties etc. Regulations 1997.    
      Removal and storage Reasonable costs of removal and storage, in accordance with
  • Schedule (2) to Regulation 3 of the Distraint by Collectors (Fees, Costs and Charges) Regulations 1994
  • Schedule 2(5) to Regulation 8(1) of the Distress for C&E Duties etc. Regulations 1997.
Out-of-pocket expenses of the parties involved, in the event of a prearranged removal not proceeding.    
  Sale Costs in accordance with
  • Schedule (4) to Regulation 3 of the Distraint by Collectors (Fees, Costs and Charges) Regulations 1994.
  • Schedule 2(7) & (8) to Regulation 8(1) of the Distress for C&E Duties etc. Regulations 1997.

The above costs are also detailed on forms C204 and C204a.