HMRC had paused its debt collection visits during the pandemic, but in spite of the fact that the covid pandemic is nowhere near over, HMRC’s bailiff teams are out of the road again.
A bailiff visit is always alarming, and potentially damaging to the business reputation, and unfortunately the HMRC field force team (aka bailiffs) can arrive even when there is no outstanding tax debt.
For example - if an amended return has been filed that reduces the tax due, the return may not have been processed by HMRC’s computer due to software problems, although the return will have been acknowledged as received. We advise our clients to keep an eye on the tax owing function of their online personal tax account or business tax account. Even if you ring HMRC and get a note added to HMRC’s debt management system there is no guarantee the field force team will review this note before visiting.
In case HMRC bailiffs do turn up we advise our clients to take the following actions:
- Don’t let the bailiffs on to the premises – they have no rights of entry under civil law.
- If they have entered the property – ask them to leave.
- Ask the bailiff to leave the letter from HMRC’s debt management department.
- Call us as soon as actions 1 to 3 are done.
- Do not let bailiffs take away any business documents or information.
If the HMRC visit is part of a dawn raid under criminal law, the client should call a criminal lawyer immediately, as different rules and procedures apply.
Written by the Tax Advice Network