Notice of Distraint Issued by HMRC
The Notice of Distraint Issued by HMRC has been used since the Enterprise Act in 2003. HMRC had to concentrate its effort on chasing unpaid taxes, since it was not a preferential creditor.
HMRC has however adopted various methods for collecting debts.
It is important to maintain negotiating with the HMRC. Especially you can’t pay VAT.
A “Notice of distraint“. HMRC uses more and more, putting pressure on companies to pay. So, ensure you comprehend the implications of the document.
A common perception remains that HMRC is hostile (not physically) in its strategy of collecting overdue money.
Before an HMRC officer visits your business premises, they send a notification by post, advising you, the tax remains overdue. Therefore, when a Bailiff or HMRC officer arrives at your business with a “Notice of Distraint“, it can come as no surprise, as the company has had a warning in writing.
Therefore, once you receive the letter, contact the HMRC and “START TALKING.” Do not ignore a Notice of Distraint Issued by HMRC.
Your company has a ‘Notice of Distraint Issued by HMRC’ served on it.
Once in receipt of distraint, contact HMRC immediately. They can remove it if you engage in negotiations. Do not avoid it. If you wish, seek independent advice from an independent licensed insolvency practitioner. The HMRC is determined when collecting money. Soon, an HMRC distraint officer will be at your premises to take an inventory of assets. If forced, they will sell them to pay for the Overdue Tax via a public auction.
Notice of Distraint Issued by HMRC – What can I do when receiving distraint?
- FIRSTLY: Ensure you confirm they are from HMRC. Officers should have an identity card. If in doubt, contact HMRC.
- DISPUTED: This should be disputed in the first letter. Act swiftly. If under appeal, they will not remove goods;
- AGREED; Pay the demand to secure business.
However, if you can pay, but need time? Then contact the team at HBG Advisory. Consider an insolvency rescue procedure, like
Therefore, clearly you need clear help from an Insolvency Practitioner.
However, if there is any doubt of the future, especially during Coronavirus Covid-19, we can help with the notification of liquidation or the intention of appointment. Both options stop any further measures or removal of goods from your premises.