HMRC has received complaints over the issue of demand notes for
tax which is not collectible (for example, because a postponement
application has been made and is unsettled) and over the issue of
incorrect demands (for example, because the payable and postponed
amounts have been reversed). Debt Management & Banking may
demand (perhaps with threat of formal proceedings) any charge not
shown in their records as stood over, and it is essential that
other Network offices play their part in ensuring that such demands
have a sound basis in law.
You must be ready to recognise informal or implied
applications to postpone payment, especially from unrepresented
taxpayers.
You must always settle postponement applications formally in
accordance with AH0165. This rule should be applied even though the
appeal may be capable of being settled at the same time. Failure to
observe this rule may lead to a loss by HMRC of interest which
would otherwise be chargeable.
