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HMRC internal manual

Debt Management and Banking Manual

HM Revenue & Customs
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Summary Proceedings (Sc): After an earnings arrestment has been lodged

The following gives a brief outline of what you need to do once an earnings arrestmenthas been served. There are certain steps which must be followed to ensure that an earningsarrestment is correctly operated and also to avoid incurring penalties.

In the circumstances it is essential that you refer to the guidance at DMBM671130 -DMBM671180 whenever an earnings arrestment has been executed.

Once you have been advised that the earnings arrestment has been served you must

  • ask the employer at what intervals he/she will be sending the deductions to you
  • maintain a strict B/F on the case to ensure that the employer complies with the arrestment and that HMRC does not lose out on monies due.

On receipt of the first payment from the employer

  • acknowledge it in writing and tell the employer that he should continue to send these payments to you until you advise that the debt is cleared
  • issue a receipt to the defender and
  • B/F the case to await the further payment. Payments can be made by cheque but if you find that the employer’s cheques are being dishonoured you should tell the employer that in future, payments must be made in cash.

See DMBM671130 – DMBM671140 for guidance on what to do where an employer fails tocomply with an earnings arrestment.