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HMRC internal manual

Debt Management and Banking Manual

From
HM Revenue & Customs
Updated
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Enforcement action: summary proceedings (Scotland): costs accounting: completing forms C16 for SP and OC cases

When to complete forms of the C16 series

You must record the details of the case on the forms of the C16 series in every case where

  • you send a summons or an initial writ to the court for registration
  • you send the appropriate fee with an inhibition to the Registers of Scotland for recording in the inhibitions register
  • the sheriff officer submits a claim for payment of fees
  • you receive a cheque from the sheriff officer (drawn on the defender’s or the sheriff officer’s bank account) which includes an amount for costs
  • you receive a payment direct from the defender for costs or including costs.
  • you either transfer costs to or receive costs from another debt management office in Scotland or EIS Edinburgh on forms C28(Z)(Scotland).

Use a new series of consecutive numbers, starting at 1, for each account for each of the forms of the C16 series.

You should enter

  • on the relevant form of the C16 series the consecutive number in column 1
  • the relevant summary proceedings or ordinary cause consecutive number in column 1a
  • the defender’s name and details of the amount outstanding in

    • columns 2 - 4 of the C16(Court fees)
    • columns 2 and 3 of the C16(SOcosts)
    • columns 2 and 3 of the C16(Solsandcollsfees).

Court fees

Whenever you send either a summons or an initial writ to the court for registration

  • enter the details of the fee paid in column 5-7 of the C16(Courtfees).

When you receive the monthly invoice from court

When you receive the monthly invoice of court fees from the court and payment is authorised

  • enter the details of the fee paid in column 11 of the C16(Courtfees).

Court fees recovered from the defender

When you recover court fees from the defender

  • note them in columns 14 of the form C16(Courtfees).

Award to pursuer

If the sheriff considers that the defender has caused you unnecessary inconvenience he may award you costs.

If so

  • complete form C17(Award to Debtor)
  • amend the footer on the form from “Award to Debtor” to “Award to Pursuer”
  • include the amount of these costs in your claim of fees for expenses
  • enter the details

    • in column 12 of the C16(Courtfees)
    • on form C17(Balance)(Scotland)
  • keep the forms for balancing purposes.

Sheriff officer costs

Whenever the sheriff officer takes an action on your instructions he will send you an invoice for his costs. You should note these in columns 4-7 of the C16(SOcosts).

When you receive an invoice from the sheriff officer

When you pay the sheriff officer

  • enter the details of the costs paid in column 11 (VAT inclusive) of the C16(SOcosts). (Note: This should also include any amount shown in column 8a of the C16(SOcosts) brought forward from the previous account as costs due but not paid to the sheriff officer before the end of the account.)

VAT considerations

Although, where appropriate, you have to pay VAT on the sheriff officers fees, the VAT is not chargeable to the debtor.

25 per cent check of all invoices from the sheriff officer

You must check 25 per cent check of all invoices from the sheriff officer (DMBM670090).

Sheriff officer costs recovered from the defender

When you recover sheriff officer costs from the defender

  • enter them in column 13 of the C16(SOcosts).

Solicitors and debt managers fees

Fees incurred in a defended case

If HMRC Solicitors have represented the Department in a defended case (DMBM676210 - DMBM676220 for SP and DMBM681710 etc for OC) they will send you a schedule of fees incurred with the extract decree.

When you receive these papers

  • detach the schedule of fees
  • enter the details of the fees incurred in column 7 of the C16(Solsandcolsfees)
  • keep the schedule for balancing purposes.

Local agents fees

Sometimes you may have to engage a local agent to attend court on your behalf. If this happens

  • pay the agent’s fees
  • enter the details in column 17 of the C16(Solsandcollsfees)
  • record the details on form C17(Balance)(Scotland)
  • keep this form for accounting purposes.

Also where you consider you can recover any such fee from the defender

  • enter the details in column 8 of the C16(Solsandcollsfees).

Registers of Scotland fees

When you send Letters of Inhibition for recording in the Register of Inhibitions, the Registers of Scotland office will charge a fee of £20 and invoice you each month.

When you receive the monthly invoice

  • enter the details of the fees paid in column 16 of the C16(Solsandcollsfees)
  • keep the monthly invoices for balancing purposes.

Not payable costs

For any court fees or sheriff officer costs that are not payable by the defender

  • enter the details in the appropriate C16 record

    • for court fees in column 17 of the C16 (Courtfees)
    • for sheriff officer costs in column 16 of the C16(SOcosts).

Transfer of costs on form C28(Z)(Scotland)

When you transfer costs on form C28(Z)(Scotland) to another debt management office in Scotland or EIS Edinburgh, enter the details as appropriate in

  • column 18 of the C16(Courtfees)
  • column 17 of the C16(SOcosts) and
  • column 14 of the C16(Solsandcollsfees).

When you receive a transfer of costs on a form C28(Z)(Scotland) from another debt management office in Scotland or EIS Edinburgh, enter the details as appropriate in

  • column 10 of the C16(Courtfees)
  • column 10 of the C16(SOcosts) and
  • column 6 of the C16(Solsandcollsfees).