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HMRC internal manual

Debt Management and Banking Manual

From
HM Revenue & Customs
Updated
, see all updates

Enforcement action: CCP: late appeals, claims and adjustments: claims to adjust ITSA debts

Claims to adjust ITSA POAs

A debtor may make a claim to adjust an ITSA POA at any time before 31 January after the year of assessment. The due date of the adjusted amount is not affected.

Before judgment

Reduction to nil

If the POA is reduced to nil and no other liability is included in the claim:

  • advise the court that you are withdrawing from the action
  • treat the fees as irrecoverable.

If the POA is reduced to nil, but other liabilities included in the claim remain payable, you should:

  • write to the defendant

    • saying that as a result of their claim to adjust the POA the amount claimed in the court action has been amended
    • asking for their written consent to amend your particulars of claim (DMBM665640)
  • send a copy of the letter and the defendant’s reply to the court
  • file amended particulars of claim
  • continue the action.

Where the amended claim falls into a lower court fee band for starting an action, the court will not normally reimburse the difference, nor should you seek reimbursement. You should continue the action including the original fee paid. You should not adjust the fixed commencement costs.

Exceptionally if the court insists on a lesser court fee being included in the action then you should do so without question and write off the difference unless the court refund it to you of their own accord. You should also adjust the fixed commencement costs as necessary.

Amendment to debt

If the POA is otherwise amended:

  • substitute the revised POA in your proceedings
  • recalculate the interest on the revised amount
  • write to the defendant:

    • saying that as a result of their claim to adjust the POA the amount claimed in the court action has been amended
    • asking for their written consent to amend your particulars of claim (DMBM665460)
  • send a copy of the letter and the defendant’s reply to the court
  • file amended particulars of claim
  • continue the action.

Where the amended claim falls into a higher court fee band for starting an action, the court will not normally seek an additional fee for the difference. You should not adjust the fixed commencement costs.

Where it falls into a lower band, the court will not normally reimburse the difference, nor should you seek reimbursement. In all circumstances, you should continue the action including the original fee paid. You should not adjust the fixed commencement costs.

Exceptionally, if the court insists on payment of an additional court fee then you should arrange this and include the higher fee in the amended claim and adjust the fixed commencement costs as necessary. Similarly, if the court insists on a lesser court fee being included in the action then you should do so without question and write off the difference unless the court refund it to you of their own accord. You should also adjust the fixed commencement costs as necessary.

After judgment

Reduction to nil

If the POA is reduced to nil and no other liability is included in the claim:

  • advise the court and the judgment debtor that you are withdrawing from the action
  • treat the fees and costs as irrecoverable
  • do not oppose any application to have judgment set aside (DMBM666380).

If you are taking any enforcement action:

  • advise the court and withdraw from that action
  • treat the fees of any enforcement action; for example, the issue of a warrant of execution, as irrecoverable.

For more information, see DMBM668370.

If the POA is reduced to nil, but other liabilities included in the claim remain payable, you should:

  • notify the judgment debtor of the lesser amount now due
  • BF seven days before taking any enforcement action.

Where the amended claim falls into a lower court fee band for starting an action, the court will not normally reimburse the difference, nor should you seek reimbursement. You should continue the action including the original fee paid. You should not adjust the fixed commencement and judgment costs.

Exceptionally if the court insists on a lesser court fee being included in the action then you should do so without question and write off the difference unless the court refund it to you of their own accord. You should also adjust the fixed commencement and judgment costs as necessary.

Amendment to debt

If the POA is reduced:

  • recalculate the interest on the revised amount
  • notify the judgment debtor
  • BF seven days before taking any enforcement action.

Where the amended claim falls into a lower court fee band for starting an action, the court will not normally reimburse the difference, nor should you seek reimbursement. You should continue the action including the original fee paid. You should not adjust the fixed commencement and judgment costs.

Exceptionally if the court insists on a lesser court fee being included in the action then you should do so without question and write off the difference unless the court refund it to you of their own accord. You should also adjust the fixed commencement and judgment costs as necessary.

If the POA is increased:

  • advise the judgment debtor
  • ask the judgment debtor for payment (for both the judgment debt and the increase).

In the absence of payment:

  • take enforcement action for the judgment debt
  • take further proceedings for the difference.

If you are taking enforcement action, excluding warrants of execution and writs of fi fa, which are dealt with at DMBM668370, refer the matter to your line manager.