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HMRC internal manual

Debt Management and Banking Manual

From
HM Revenue & Customs
Updated
, see all updates

Enforcement action: distraint: costs and accounting: auctioneer’s invoice

Checking the auctioneer’s invoice for charges and expenses

Where a sale has not taken place and payment made

Where the defaulter fully pays the debt and costs before the goods are sold and the auctioneer sends you an invoice for the charges and expenses he has incurred (these may include appraisal, removal, storage of goods and expenses for arranging a sale)

  • check that the claim is within the scale of fees
  • include VAT where the bailiff or auctioneer is a `taxable person’
  • pay the invoice through ERP.

Where a sale has not taken place and payment NOT made

If, exceptionally, the auctioneer has not recovered removal or appraisal costs from the defaulter, you must pay the auctioneer’s costs

  • check the claim for costs is within the scale of fees and any additional ones are reasonable
  • keep a record of the date and amount you pay the auctioneer
  • include VAT where the bailiff or auctioneer is a `taxable person’
  • pay the invoice through ERP.

NSV codes for payments made through ERP

Fee type NSV and nominal code
   
Appraisal, removal and sale fees for non-bailiff cases NSV code ZPE0004 Nominal HS006
Possession and attendance fees incurred by a bailiff NSV code ZPE00028 nominal HS016
Non-recoverable VAT is Nominal HS997    
  Auctioneer’s setting up charges NSV code ZPE00028 nominal HS016
Non-recoverable VAT is Nominal code HS997    
  Setting up fees where the case is referred to an auctioneer NSV code ZQA0115. This will default to the nominal code HS16.
VAT is not recoverable from the debtor.    
  General vehicle hire NSV code XHF0007 Nominal code HA701.
  Mileage (vehicle hire with chauffeur) NSV code ZSE0013 Nominal code HA701. If VAT is recoverable use Nominal code HA99.