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HMRC internal manual

Debt Management and Banking Manual

From
HM Revenue & Customs
Updated
, see all updates

Ordinary cause: Offer to pay by instalments

If the defender offers to pay by instalments prior to the expiry of the period ofnotice, whether accompanied by a partial payment or not you should (DMBM680090)

  • speak to the defender personally and
  • advise that the court cannot grant a time to pay direction for a tax debt and that your action would in the circumstances result in decree being granted for the whole sum plus expenses.

Acceptable offer

In considering the defender’s financial circumstances, if you are satisfied thatthe offer of payment is reasonable you should

  • accept the proposals but
  • warn that any default will result in your obtaining and enforcing the decree.

Note however that you should

not apply for decree in suchcases until the arrangement fails.

Unacceptable offer

In cases where you cannot accept the defender’s proposals for payment you shouldtell the defender that

  • any payment made will be accepted without prejudice to the action and
  • you will be seeking decree for any balance remaining plus expenses.

If a payment accompanies the request you should

  • bring it to account
  • complete the appropriate costs record as necessary
  • note the appropriate computer records
  • wait until the cheque has cleared and then
  • minute the court to grant decree in absence for the balance remaining plus expenses.