HMRC's Debt Collection Procedures

HMRC is upping its debt collection activities and, as from mid August, will be issuing leaflets advising businesses and individuals on how to deal with HMRC debt collectors, your rights and their powers to demand payment and remove goods on the spot.

"What to expect when we visit you" explains HMRC’s powers when it arrives at premises to collect outstanding debts, and will be given to debtors when HMRC arrives at their premises.

Quote:

"We are visiting you because we have already attempted to contact you by post and/or by phone, to advise you that you owe us some money. As we have not received the amount that you owe we are now visiting you to collect payment."

For tax and NI debts, HMRC will only call between sunrise and sunset, and for VAT bills, between 8am and 8pm.

Why the distinction in timings?

Debtors facing HMRC visits can expect their goods to be seized in order to settle their debt if they are unable to pay in full. The collector is empowered to select goods from the taxpayer’s home or business, list them on an inventory form C204 Distraint notice and inventory, and then arrange for an auctioneer to take them away.

A separate version of the leaflet has been published for debtors based in Scotland, because under Scottish law HMRC does not have the right to seize goods for debt settlement.

The leaflets can be downloaded here England, Wales and Northern Ireland and Scotland 


Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.

Ken Frost has negotiated a 10% discount on any polices that may suit your needs.

However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.

What is Solar Tax Investigation Insurance?

Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Solar Tax Investigation Insurance



HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

VAT Debt Falls To £2.5BN

Economia reports that businesses owe HMRC around £2.5BN in unpaid VAT, this is down on last year's figure of £2.7BN.

This fall in debt comes about as HMRC has doubled its use of distraint (10,577 times in the year ending March 2012, up from 5,520 over the same period in 2011).

HMRC has also more than doubled its spend on external debt collectors to almost £13M, according to data provided by HMRC to financial provider Syscap.

In distraint cases HMRC staff visit a company's premises without warning to collect unpaid taxes. The company then has five days to pay before major assets such as cars and computers can be removed.

Philip White, CEO of Syscap, said that HMRC has become “increasingly draconian” in its approach, through fines and seizing assets.

Has HMRC become more draconian in its approach, or is it that companies have been "pushing the envelope" further wrt delaying payments etc?

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.

Ken Frost has negotiated a 10% discount on any polices that may suit your needs.

However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.

What is Solar Tax Investigation Insurance?

Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Solar Tax Investigation Insurance



HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"