IHTM38000 - Debt Management: contents
This guidance will be moving to Debt Management and Banking shortly
Dealing with the taxpayer in Debt Management & Banking (DMB) |
Summary
Summary |
Debt Management & Banking (DMB)
Introduction |
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What does DMB do? |
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DMB's responsibilities |
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Referring to DMB |
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Liaison between the case owner and DMB |
Payment problems
Reviewing for payment |
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Tax not in dispute |
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Part payment of tax |
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Action in Debt Management & Banking (DMB) |
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Likely delay or difficulty in payment |
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Action in DMB |
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Undertakings |
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Time to pay |
Debt Management Case Plan
Introduction - why do we need a Case Plan? |
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What is the Case Plan? |
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Where is the Case Plan? |
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Record selectors |
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Creating records |
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Finding a Case Plan record |
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Completing the Case Plan |
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Links to instructions |
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Printing the Case Plan |
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Deleting a Case Plan record |
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More than one debt due |
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Dealing with subsequent referrals |
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Quality assessment |
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Management reports |
The taxpayer profile and financial assessment
Introduction |
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DMB5 - the taxpayer profile |
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DMB5 (Part 2) - the financial assessment |
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Human Rights Act |
Tracing the taxpayer
What can Debt Management & Banking do to trace a taxpayer? |
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Taxpayers' Index |
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Tracing a taxpayer through their employer |
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Contacting a taxpayer at work |
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BT Phone Disk |
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Info Disk |
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Can the Valuation Office Agency help? |
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Liaison with other parts of HMRC |
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Making use of the Tracing Unit |
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Enforcement Office |
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Information Notices |
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Consignia Tracing Service * |
Dealing with the taxpayer in Debt Management & Banking (DMB)
Reviewing the facts |
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Preparing your case |
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Calling the taxpayer |
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The next steps |
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Writing to confirm the position |
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Setting out the facts |
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Setting deadlines |
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Writing to beneficiaries |
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Taxpayer confidentiality |
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Delays in notifying other liable persons |
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Pursuing payment from other liable persons |
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Referring to DMB Team Leader |
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Standard letters * |
Land charges
Introduction |
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Scotland |
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Land charges and cautions |
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Effect of a land charge * |
Land charges: England & Wales
Background |
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Land charges against unregistered land |
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Registered land and the Land Registry |
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Establishing whether the land is registered |
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Placing a charge on registered land |
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Placing a charge on unregistered land |
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Removing a charge from registered land |
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Removing a charge from unregistered land * |
Land charges: Northern Ireland
Northern Ireland - formal charges |
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Northern Ireland - cancelling a charge |
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Northern Ireland - requisition of services |
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Northern Ireland - Land Registry services that may be useful to Debt Management & Banking (DMB) |
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Northern Ireland - entering and removing a caution * |
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Undertakings |
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The charge on debts |
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Registration of a land charge in Northern Ireland - example |
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Application for production of a land certificate in Northern Ireland - example |
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Removal of a land charge in Northern Ireland - example |
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Registration of a caution in Northern Ireland - example * |
Tax stops and stops on stocks and shares
Introduction |
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Income tax stops |
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Stops on shares |
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When are stops on shares applicable |
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Registering a stop |
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Marking the Debt Management Case Plan |
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"Warning off" notices |
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Court action - liaising with the Solicitors' Office * |
Non-resident taxpayers
When should cases be referred to Debt Management & Banking (DMB)? |
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DMB's initial action |
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Protective action |
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Considering further action |
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What if the taxpayer refuses to pay? |
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Referring to the Solicitor's Office |
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Using the Double Taxation Agreements * |
Assets situated outside the UK
When should cases be referred to Debt Management & Banking (DMB)? |
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Other factors to consider |
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Action in DMB |
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After determination of the debt |
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Discretionary trusts |
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Blocked assets |
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DMB's treatment of "blocked asset" cases * |
Grants on credit
Introduction |
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Statutory background |
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What are "exceptional circumstances"? |
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Is a penalty appropriate? |
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Other circumstances in which a grant on credit may be considered |
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Certificate required by the Probate Registry |
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Protecting the charge to tax and post-grant compliance |
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Alternatives to a grant on credit |
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Limited grants of administration |
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Referring to the Penalty Portfolio Holder |
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Important Debt Management & Banking (DMB) action when dealing with limited grants |
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Types of limited grant |
RN Limited
Introduction |
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What is RN Limited? |
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How does RN Limited monitor the mortgage? |
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When is the debt discharged? |
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Contacting RN Limited |
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Debt Management & Banking (DMB) action |
Notices of Determination (NODs)
Introduction |
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Who can issue a payment NOD? |
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When should you issue a payment NOD? |
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Using the threat of a NOD |
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Keeping to the timetable |
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Is a NOD still appropriate? |
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The format of the NOD |
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One person liable in two capacities |
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Taking lifetime cumulation into account |
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Instalment cases |
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Covering letter to be issued with a NOD |
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What to do if the taxpayer appeals |
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What to do if the taxpayer does not appeal |
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Pursuing tax not in dispute in open enquiry cases |
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Example A - tax due on free estate only with no aggregable property |
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Example B - tax due on free estate only where instalments apply |
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Example C - tax due on survivorship property |
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Example D - tax due on free estate where there is aggregable property |
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Example E - tax due on a chargeable lifetime transfer or failed Potentially Exempt Transfer |
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Example F - tax due on settled property |
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Example G - tax due on ten-year anniversary of a chargeable lifetime transfer |
Time to pay
Introduction |
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Time to pay not exceeding three months |
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Time to pay exceeding three months |
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Time to pay applications |
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How long should payment be postponed? |
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Considering protective action |
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Informal instalments over a specified period |
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Your aims when agreeing time to pay |
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Methods of payment |
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Monitoring time to pay agreements |
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What happens if the agreement is broken? |
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Existing time to pay agreements |
Contract settlements
When is a contract settlement appropriate? |
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Negotiating a contract settlement |
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Calculating the amount to be paid |
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What periods should be allowed? |
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If the taxpayer objects to the compensation element |
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The terms of an agreement for a debt not determined by a formal notice |
Recovery of tax by legal proceedings
Introduction |
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England & Wales (E&W): if the tax at stake does not exceed £15000 |
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E&W: if the tax at stake exceeds £15000 |
England & Wales County Court cases
E&W County Court cases: initial action in Debt Management & Banking |
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E&W County Court cases: before referring to the Collector |
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E&W County Court cases: referring to the Collector |
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E&W County Court cases: monitoring progress |
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E&W County Court cases: the Certificate of Debt |
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E&W County Court cases: initial action by the Collector |
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E&W County Court cases: when a hearing takes place |
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E&W County Court cases: time to pay arrangements |
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E&W County Court cases: summary of submission to the Collector |
England & Wales enforcing the judgement
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Types of action |
Scotland
General |
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Referring to the Solicitor's Office |
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Debt Management & Banking's (DMB) role once the case is referred |
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Initial action by Solicitor's Office |
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What if the taxpayer is resident overseas? |
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Action by Solicitor's Office if no defence is made |
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Enforcing the judgement |
Northern Ireland
General |
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The Small Claims Court |
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Before referring to the Crown Solicitor's Office (CSO) |
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Referring to the CSO |
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Action by the CSO |
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CSO action if no defence is received |
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What if the Civil Bill/Writ is challenged |
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Enforcing the judgement |
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Referring to the Enforcement of Judgements Office (EJO) |
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Action in EJO |
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Monitoring progress of the case |
Bankruptcy and the Enforcement & Insolvency Service (EIS)
General |
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Scotland |
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Northern Ireland |
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When does IHT get involved in bankruptcy proceedings? |
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Who would IHT pursue in a bankruptcy action? |
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EIS - introduction |
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EIS - the five teams IHT will deal with |
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Referring to EIS - general |
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Referring to EIS - "no arrears" cases |
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Referring to EIS - Form DMB 8 |
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Arrears in EIS |
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Action in IHT after referral |
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Action in EIS after referral |
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When a bankruptcy order is made |
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Procedure if IHT is notified of a bankruptcy order |
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Procedure if the debtor is already bankrupt |
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Individual Voluntary Arrangements |
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Example of final warning letter in "no arrears" cases |
Remissions and irrecoverable calculations
Introduction |
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Procedure |
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Authorisation limits |
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Authorisation of remissions completed by Compliance Group/PC&S |
