DMBM560140 - Debt and return pursuit: foreign cases: Mutual Assistance in the Recovery of Debt (MARD) (EU States): requests for recovery received from other member states - EIS Bradford action

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International Debt Unit, MARD team referrals

Where:

  • another member state has asked the UK to recover a tax or duty debt owed to them by a debtor living in, or who has assets in, England or Wales
  • the International Debt Unit, MARD team have been unable to obtain payment from the debtor themselves and either:
  • CCP action has been determined as the next appropriate recovery action
  • bankruptcy/insolvency action has been determined as the next appropriate action (where the only debt HMRC are attempting to recover is that of another member state, we will seek to obtain a CCJ before we petition for bankruptcy or insolvency)

the International Debt Unit, MARD team will send the debtor an IDMS10 SEES enforcement warning letter and enforcement factsheet.

If the debtor fails to pay or respond to the warning letter, they will refer the case to you for action. They will send you a referral form explaining the action you need to take, together with supporting papers detailing the debt due. They will also transfer ownership of the debt (This content has been withheld because of exemptions in the Freedom of Information Act 2000).

Take CCP action, using the same procedures as you would for an equivalent UK tax or duty debt. But, use the relevant MARD particulars of claim form.

Debtor requests time to pay

If the debtor requests time to pay, deal with as per the guidance in DMBM800000.

If the offer would not be acceptable if it were a UK debt, reject the request as per the normal guidelines.

If the offer would be acceptable if it were a UK debt:

  • advise the debtor that the agreement is acceptable as per the normal rules
  • notify the International Debt Unit, MARD team of the details of the proposal
  • transfer ownership of the (This content has been withheld because of exemptions in the Freedom of Information Act 2000)record back to the International Debt Unit, MARD team to monitor the case to ensure the debtor does not default.

Debtor pays

Payments will normally be made direct to the Accounts Office Shipley who will then allocate the payment to the charge(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

If payment is made in full, including UK enforcement fees and costs, transfer ownership of the (This content has been withheld because of exemptions in the Freedom of Information Act 2000)record back to the International Debt Unit, MARD team and close your case.

Where it is only possible to secure payment from the debtor for the debt alone, UK enforcement fees and costs should be deducted from any payments recovered. The balance should then be set off against the other member state’s debt.

Debtor disputes the debt

If the debtor disputes their liability to, or the accuracy of, the debt, deal with their dispute as per the guidance in DMBM560160.

HMRC enforcement fees and costs

UK fees should be recorded in accordance with normal practice. Such fees and costs are retained by the UK.

Action after judgment obtained

Enforce the judgment in the same way you would if it were an equivalent UK debt.

But, where bankruptcy or insolvency action is the next step, send the debtor an insolvency warning letter, the UIPE and enforcement fact sheet. If the debtor fails to pay or respond to the warning letter, refer the case to EIS Worthing for action following the EIS referral guidance at DMBM685000.