HMRC Bailiffs and Enforcement Officers – Can They Enter My House?
A Bailiff, HMRC officer or an Enforcement Officer has the power to take control of your goods and possessions in order to satisfy a debt.
ReadHMRC Bailiffs and Enforcement Officers – Can They Enter My House?
A Bailiff, HMRC officer or an Enforcement Officer has the power to take control of your goods and possessions in order to satisfy a debt.
ReadWhat is an HMRC Notice Of Enforcement?
Any creditor who is owed money has the power to serve a Notice of Enforcement if they obtain a court order. HMRC or landlords do not need a court order, however they must still obey strict regulations to retrieve debt.
ReadIf You Can’t Pay Corporation Tax What Are The Penalties?
If you can't pay your corporation tax, then it may be that the company is insolvent. Get in touch with HMRC to explain the situation.
ReadHow To Get Help With VAT Arrears
Is your business suffering from VAT arrears? Failure to pay VAT on time can lead to problems with HMRC who will try and recover the debts. We can advise on your options
ReadPenalties for Late Payment of PAYE
HMRC implement penalties for late payment of periodic PAYE /NIC from businesses.
ReadWhat are PAYE Security Deposits?
Since 6 April 2012 HMRC have been able to demand PAYE security deposits under paragraph 4(2)(a) of Schedule 11 to the VAT Act 1994.
ReadWhat Is The HMRC Debt Management Department
The content on this page has been written by Robert Moore and approved by Chris Ferguson Licensed Insolvency Practitioner and Managing Director of RMT KSA
ReadHow HMRC Collects Its Debts: A Guide for Businesses
HMRC is what is called a “sophisticated creditor” in that they have economies of scale that ensure that it is worth their while to chase even the smallest of debts. There is no particular difference in the methods used for collecting different types of taxes, but VAT and PAYE are often pursued more readily as they make up the largest types of tax that a company pays.So, what steps are taken by HMRC to ensure payment is made?Step 1: Reminders and Collections In the first instance, HMRC will start collecting debts by issuing payment reminders and these can be in the form of letters and even SMS texts. If you fail to pay the amount owed, the debt may be outsourced to a third-party debt collection agency.HMRC has started to use these private-sector debt collection agencies more and more in recent years to pursue debts. These agencies are likely to send more aggressive reminders, threatening legal action or the seizure of goods.HMRC Debt Collection Agencies include:1st Locate (trading as LCS) Advantis Credit Ltd Bluestone Credit Management Ltd BPO Collections Ltd CCS Collect (also known as Commercial Collection Services Ltd) Moorcroft Oriel Collections Limited Past Due Credit Solutions (PDCS)Step 2: Control of Goods (Distraint) If initial reminders do not work, HMRC or a certified bailiff contracted by them may take action to take control of goods or property at the company's registered address. This is a formal process known as distraint. The goal is to sell the goods at auction to settle the debt.The officer will send a Writ of Control and a Notice of Enforcement to the debtor, giving them 7 clear days to either pay in full or negotiate a payment plan. If the debtor doesn't sign a Controlled Goods Agreement, the officer can make arrangements to remove the goods for sale.While the value of goods may not be enough to cover the debt, the threat of seizure is often enough to focus minds and find funds from elsewhere.Step 3: A Winding-Up Petition If all other methods fail, HMRC may issue a winding-up petition as a last resort. This means HMRC will instruct its solicitors to petition the court to rule that the business is insolvent and should be closed.A winding-up petition prevents the debt from getting any worse, as the company will be forced to stop trading. In most cases, it is unlikely that HMRC will get its money back, but the threat of this action can be very effective.
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