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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Enforcement action: CCP: late appeals, claims and adjustments: ITSA or CTSA determination superseded by a self assessment

Section 28C(4) Taxes Management Act 1970 (for ITSA) and Paragraph 40 of Schedule 18 to the Finance Act 1998 (for CTSA) provide that where an officer of the Board has commenced any proceedings for the recovery of tax charged by a determination and before those proceedings are concluded the determination is superseded by a self assessment, the proceedings may be continued as if they had been proceedings for the unpaid amounts due under the self assessment.

In the context of the county court the proceedings are concluded at the date of judgment.

Before judgment

Reduction to nil

If the self assessment results in nothing being payable for the particular year involved and no other liability is included in the claim:

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

If the self assessment results in nothing being payable for the particular year involved but other liabilities included in the claim remain payable, you should:

  • write to the defendant:

    • saying that as a result of their self assessment the amount claimed in the court action has been amended and
    • 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 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

Where a self assessment results in an increase or decrease to the amount payable for the particular year involved, you should:

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

    • saying that as a result of their self assessment the amount claimed in the court action has been amended and
    • 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 self assessment results in nothing payable for the particular year involved 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 the self assessment results in nothing payable for the particular year involved 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 self assessment reduces the amount payable:

  • 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 however the self assessment increases the amount payable, ask the judgment debtor for payment for both the judgment debt and the increased amount brought into charge.

If it is not paid, take:

  • enforcement action for the judgment debt
  • 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.