Enforcement action: distraint: costs and accounting: accounting for costs and LOMR / MIS
Types of distraint costs
Distraint costs are classified as chargeable or non chargeable.
Chargeable costs - to be recorded on SAFE
Only chargeable costs are recorded on SAFE.
These are costs HMRC charges the debtor for
They are called chargeable costs because they can be recovered from the debtor, if necessary through enforcement proceedings.
Recording chargeable costs on SAFE
To create a distraint cost charge on SAFE
- follow the link
Non chargeable costs - NOT to be recorded on SAFE
Non chargeable costs can be
costs charged to HMRC by the bailiff or auctioneer for
- attendance fees
- setting up fees
costs charged to the debtor by the auctioneer for
Although non chargeable costs are not recorded on SAFE, you must keep a record of them. This is because Finance needs to know the amount that HMRC has paid for costs which it cannot charge the debtor.
Keeping a record of non chargeable costs
- Keep a manual or electronic record on non chargeable costs.
Guidance on reporting them will be issued before each Interim Balance.
Additional record keeping - LOMR / MIS
There is still a requirement to record and keep information for LOMR and MIS.
So long as you keep the information, any form of recording is acceptable.