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HMRC internal manual

Debt Management and Banking Manual

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HM Revenue & Customs
Updated
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Enforcement action: taking control of goods (TCoG): fees

Scale of fees chargeable at each stage

A fees structure has been agreed with the Ministry of Justice (MoJ) applicable to all enforcement agents based on a combination of fixed and percentage fees.

These are in three stages and only one set of fees can be charged for each stage; however, many actions are taken within that stage.

The stages at which they are chargeable and the trigger point at which they become payable and chargeable against the debtor are as shown below.

The relevant fees are chargeable as follows.

  • Fee 1 (Compliance stage) - Fixed fee of £75
  • Fee 2 (Enforcement stage - chargeable on first visit to premises) - Fixed fee of £235 + 7.5 per cent of the principal debt  to be recovered which exceeds £1,500
  • Fee 3 (Sale or disposal stage - chargeable on first visit to remove/sell assets) - Fixed fee of £110 + 7.5 per cent of the principal debt recovered which exceeds £1,500
     

The MoJ will review these figures periodically and may increase the amounts in line with inflation; the current fees structure is shown below.

Fees structure

The fees, the stages at which they are chargeable and the trigger point at which they become payable and chargeable against the debtor are shown below.

Stage Trigger point Fixed costs Additional % on debt between £0 and £1,500 Additional % on debt above £1,500
1. Administration / Compliance Issue of Notice of Enforcement £75 0% 0%
2. Enforcement First attendance at premises £235 0% 7.5%
3. Sale / disposal First attendance at premises for the purpose of transporting the goods to the place of sale or commencing preparation for sale where the sale is to be held on the premises £110 0% 7.5%

If the principal debt (plus interest) exceeds £1,500 the additional percentage charge is computed only on that part of the debt above £1,500, not all of it.

Recovery of fees

The debtor may dispute the fees if they had already paid the debt before the Notice of Enforcement was issued. If the payment was received prior to the issue of the notice, you should vacate the fees. However, if the fees have been correctly charged (in accordance with the Taking Control of Goods (Fees) Regulations 2014), then the fees should be maintained and monies should be transferred from the principal debt to clear the fees. The reallocation is in accordance with the fee regulations (Regulation 13(5)).

Fees can only be cleared by payments received or from proceeds from sale; outstanding fees cannot be entered into court. (This content has been withheld because of exemptions in the Freedom of Information Act 2000)

Any dispute regarding the amount recoverable under the regulations that cannot be resolved is ultimately to be determined by the court.

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