DMBM537050 - Debt and return pursuit: Aggregate levy: Who is liable?: Representatives of the registered person

Some content of this manual is being considered for archiving. If there is content you use regularly, please email hmrcmanualsteam@hmrc.gov.uk to let us know as soon as possible.

Tax representatives

Customers not resident in the UK are liable to pay levy due. To secure payment of levy due, we may require the taxable person to appoint a tax representative who is liable jointly and severally with the taxable person for levy due.

Section 34 (3) of the Finance Act 2000, provides:

A person who is or has been the tax representative of a non-resident taxpayer shall be personally liable 

(a) in respect of any failure while he is or was the non-resident taxpayer's tax representative to secure compliance with, or the discharge of, any obligation or liability to which subsection (2) above applies, and

(b) in respect of anything done in the course of, or for purposes connected with, acting on the non-resident taxpayer's behalf,
as if the obligations and liabilities to which subsection (2) applies were imposed jointly and severally on the tax representative and the non-resident taxpayer.

Representatives of incapacitated persons (death, illness or insolvency)

The Commissioners may, for AL purposes, direct a person to be the taxable person under Regulation 36 of the Aggregates Levy (General) Regulations 2002 [S.I. 2002/761].

Such individuals are liable to render returns as the taxable person until such time as we stop treating him as the taxable person.

This person is liable to pay the tax due only to the extent of the assets of the incapacitated person over which he has control (Regulation 36 (2) of the Regulations).

Our approach depends on the circumstances in which the representative is appointed.

Recovery policy in respect of representatives

As a matter of policy, take recovery action against a tax representative only when action against the registered person is exhausted and a debt for which the representative is liable remains unpaid. Verify the representative's status by reference to a letter signed by the authorised officer confirming his official representative status.

It is good practice to notify a representative of his liability under the Act when we start proceedings against the registered person.

The provision for mutual assistance between Member States of the European Union in the recovery of tax debts does not currently extend to the collection of AL.