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HMRC internal manual

Debt Management and Banking Manual

From
HM Revenue & Customs
Updated
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Enforcement action: CCP: late appeals, claims and adjustments: equitable liability - revenue loss

Action by EIS

On accepting that a case is appropriate (This content has been withheld because of exemptions in the Freedom of Information Act 2000) , EIS will ask Customer Ops to calculate (This content has been withheld because of exemptions in the Freedom of Information Act 2000) , and advise the defendant of the reduction, and then notify you (This content has been withheld because of exemptions in the Freedom of Information Act 2000) .

Action by debt technical office

When you receive notification from EIS, proceed as follows:

Debt remitted in full

Discharge any interest charge and treat the fees and costs as irrecoverable.

If an adjourned hearing date has been set, inform both the court and the defendant that, having regard to the circumstances of the case and without prejudice to HMRC’s legal claim, you have been authorised by the Commissioners for Her Majesty’s Revenue and Customs not to proceed any further in the matter.

Debt remitted in part

Judgment not yet obtained

If you have not obtained judgment, recalculate any interest and write to the defendant asking for payment of the revised amount due plus court fees and costs. If payment is not received, apply for judgment in default.

Where the action has been adjourned, apply on form N244 to the court for a hearing date. At the hearing, inform both the court and the defendant that the amount claimed is properly due under the Taxes Acts but having regard to the circumstances of the case, you have been authorised by the Commissioners for Her Majesty’s Revenue and Customs to abandon (the amount remitted) of the claim. Seek judgment for the balance of the claim plus fees and costs.

Judgment obtained

If judgment has already been obtained, take enforcement action as necessary for the balance. It is only necessary to notify the court of the reduction if you take enforcement action when you should show the reduced debt on the appropriate request form.

Payment made

Immediately you receive payment of the reduced claim, remit the balance.

Payment not made

If payment is not made

  • refer the arrears to EIS
  • attach a covering memo to the papers quoting

    • the full EIS reference and
    • drawing attention to the (This content has been withheld because of exemptions in the Freedom of Information Act 2000) adjustment.