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HMRC internal manual

Debt Management and Banking Manual

From
HM Revenue & Customs
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Summary proceedings: Adjustments after you issue SP summons

SA POA is reduced

A taxpayer may make a claim to adjust the POA at any time before 31 January followingthe year of assessment. The due date of the adjusted amount is not affected and you shouldmaintain the momentum of your recovery activity.

When a POA is reduced you should

  • write to the debtor to ask for immediate payment of the revised amount and fees
  • warn that unless it is paid immediately you will continue your proceedings and
  • advise the court of the revised amount and continue proceedings.

SA determination superseded by return

For SP purposes the proceedings are concluded at the date of the magistrates’ order. Atany stage before then, Section 28C(4) TMA 1970 provides that where a determination issuperseded by a self assessment (either increasing or decreasing the liabilities) you maycontinue proceedings for the amended amount.

Where the revised amount due remains within the SP monetary limit you should continue theproceedings for the revised amount.

If you have sufficient time before the hearing you should

  • write to the court advising of the new amount due and that you intend to continue proceedings in the magistrates’ court (if the amount due has increased refer to Taxes Management Act 1970 Section 28C(4) (TMA70/S28))
  • write to the debtor to ask for payment of the amount due and warn that unless payment is made immediately you intend to request an order at the hearing (give time and date if this has changed)
  • continue the proceedings for the revised amount.

Where the revised amount is increased and the case now exceeds the SP monetary limityou should

  • continue proceedings for the original amount on the summons
  • write to the debtor asking for payment of the full amount due and advise that unless payment is made you will start fresh proceedings to recover the increase and
  • start fresh proceedings as necessary.

Tax or duty reduced to nil

If the tax or duty is reduced to nil, treat the fees as irrecoverable, using from C18or the small remission procedure as appropriate.