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HMRC internal manual

Debt Management and Banking Manual

From
HM Revenue & Customs
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Enforcement action: summary proceedings (Scotland): costs accounting: Balance agreement of SP and OC costs

You need to agree all the costs detailed on the forms C16(Courtfees), C16(SOcosts) and the C16(Solsandcollsfees) at the balance date (last Friday in October each year).

Court fees

For court fees you must

  • carry any amounts outstanding into column 19. (That is column 8+10+11+12 minus column 14+15+16+17+18)
  • enter a total for each of columns 8, 10, 11, 12, 14, 15*, 16, 17, 18 and 19
  • add together the totals for columns 8, 10, 11 and 12
  • add together the totals for columns 14, 15, 16, 17, 18 and 19
  • ensure that the total for columns 8, 10, 11 and 12 agrees with the total for columns 14, 15, 16, 17, 18 and 19
  • check the total of column 14 against a machine list of the relevant payment vouchers
  • request the debt manager responsible to confirm that the total agrees with the corresponding total on CAROL.

*Note: When ascertaining the total for column 15 you should make two machine lists and enter a suitable heading on one of them and then place this list in the Balance file. Then once the C16(Courtfees) accounting record has been agreed you should prepare a machine list for the forms C18 held and confirm the total for this agrees with the total of column 16 of the C16(Courtfees). Then suitably head the machine list and place it in the balance file.

Sheriff officer costs

For sheriff officer costs you must

  • carry into column 18(a) any costs recovered from the defender but not yet paid to the sheriff officer (such an action will be the exception rather than the rule). (That is columns 8(a)+10+11 minus columns 13+14+15+16+17.)
  • carry into column 18(b) costs paid to sheriff officers but still to be recovered from the defender. (That is columns 8(b)+10+11 minus columns 7+13+14+15+16+17.)
  • enter a total for each of columns 7, 8(a), 8(b), 10, 11, 13, 14*, 15, 16, 17, 18(a) an 18(b)
  • add together the totals for columns 8(a), 8(b), 10 ,11 and 18(a)
  • add together the totals for each of columns 7, 13, 14, 15, 16, 17 and 18(b)
  • ensure that the totals for columns 8(a)+8(b)+10+11+18(a) agrees with the total for columns 7+13+14+15+16+17+18(b)
  • confirm that the total for column 8a agrees with the amount shown at item 4a of the form 45K(Costs)(Scotland) for the previous account and also that the total for column 8b agrees with the amount shown at item 11b of the form 45K(Costs)(Scotland) for the previous account
  • check the total of column 13 against a machine list of the relevant payment vouchers
  • request the debt manager responsible to confirm that the total agrees with the corresponding total on CAROL.

*Note: When ascertaining the total for column 14 you should make two machine lists and enter a suitable heading on one of them and then place this list in the balance file.) Then once the C16(SOcosts) accounting record has been agreed you should prepare a machine list for the forms C18 held and confirm that the total for this agrees with the total for column 15 of the C16(SOcosts). Then suitably head the machine list and place it in the balance file.

Solicitor’s and debt manager’s fees

For solicitor’s and debt manager’s fees you must

  • carry any amounts outstanding into column 15. (That is column 4+6+7+8 minus columns 10+11+12+13+14.)
  • enter a total for each of columns 4, 6, 7, 8, 10, 11, 12*, 13, 14 and 15
  • add together the total for columns 4+6+7+8
  • add together the totals for columns 10+11+12+13+14+15
  • ensure that the total for columns 4, 6, 7 and 8 agrees with the total for columns 10, 11, 12, 13, 14 and 15
  • confirm that the total of column 4 agrees with the amount shown at item 11c on the form 45K(Costs)(Scotland) for the previous account
  • check the total of column 11 against a machine list of the relevant payment vouchers
  • request the debt manager responsible to confirm that the total agrees with the corresponding total on CAROL.

*Note: When ascertaining the total for column 12 you should make two machine lists and enter a suitable heading on one of them and then place this list in the balance file. Then once the C16(Solsandcollsfees) accounting record has been agreed you should prepare a machine list for the forms C18 held and confirm that the total for this agrees with the total for column 13 of the C16(Solsandcollsfees). Then suitably head the machine list and place it in the balance file.

Form C17(Balance)(Scotland)

To assist Debt Management Edinburgh Group Office in finalising the agreement for this form you must firstly

  • prepare separate machine lists for the forms C17(Award to Debtor) and C17(Award to Pursuer) held and then
  • prepare a machine list for column 17 of the C16(Solsandcollsfees).

Once you have done this you must then, using the information detailed on the form C17(Balance)(Scotland)

  • prepare separate machine lists for each of the following categories
    • C17(Award to Debtor) or payment to Independent Auditors of Court
    • C17(Award to Pursuer)
    • Payment to local agents

and then

  • agree the total of the list for the C17 (Award to Debtor) or payment to Independent Auditor of Court to the separate machine list total you have prepared for the forms C17(Award to Debtor)
  • agree the C17(Award to Pursuer) total to the separate machine list total you have prepared for the forms C17(Award to Pursuer) and to the total of column 12 of the C16(Courtfees)
  • agree the total of the list for the Payment to local agents to the total of column 17 of the C16(Solsandcollsfees).

Form 45K(Costs)(Scotland)

Once you have agreed all the figures for

  • the C16(Courtfees)
  • the C16(SOcosts) and
  • the C16(Solsandcollsfees)

you must

  • enter the respective totals from these records against the appropriate entries on the form 45K(Costs)(Scotland).

After you have done this you must then check

  • for court fees that the total of the entries at 1a, 2a and 3a equals the total of the entries at 7a, 8d, 9a(1st bullet), 10a and 11a
  • for sheriff officer costs that the total of the entries at 1b,2c,3b and 4a equals the total of the entries at 6a,7b,8e,8f,9a(2nd bullet), 10b and 11b
  • for solicitors and debt managers fees that the total of the entries at 1c,2d and 3c equals the total of the entries at 7c,8g,9a(3rd bullet), 10c and 11c
  • for Registers of Scotland fees that the total of the entry at 2e equals the total of the entry at 8h.

Finally you must check that

  • the Grand Totals cross cast that is the Grand Total for items 1-5 agrees the Grand Total for items 6 -11.
  • the brought forward figures at items 1a to 1d agree the figures shown as carried forward at items 11a -11d on the form 45K(Costs(Scotland) for the previous account and
  • the brought forward figures at items 6a and 6b agree the figures shown as carried forward at items 4a and 4b on the form 45K(Costs)(Scotland) for the previous account.