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Receiving an HMRC Enforcement Notice 

Once HMRC serves you with an enforcement notice, understanding your rights helps with a favourable result.

As a company directors, you should be alerted that such action by HMRC is a warning signs of company insolvency of your company.

Once served with an enforcement notice, you can either:

  • pay the sum owed or 
  • commence negotiating a Time to Pay arrangement.

However, you can’t ignore the serving of the notice. Time now is of the essence to deal with the notice. The clock is ticking, and you MUST Act to avoid an HMRC Enforcement visit. HMRC, with such action, can use a Controlled Goods Agreement, allowing them to secure items to sell to pay outstanding tax.

Enforcement action by HMRC can lead to the winding up of a limited company.  It can also mean a demand for security on account of future tax liabilities, rendering a business unable to trade.

TALK WITH AN EXPERIENCED HMRC NEGOTIATOR AT HBG ADVISORY TODAY!

Telephone:0800 612 5448

Threat of HMRC Bailiffs

Receiving an HMRC Enforcement Notice 

Once HMRC serves you with an enforcement notice, understanding your rights helps with a favourable result.

Once served with an enforcement notice, you can either:

  • pay the sum owed or 
  • commence negotiating a Time to Pay arrangement.

However, you can’t ignore the serving of the notice. Time now is of the essence to deal with the notice. The clock is ticking, and you MUST Act to avoid an HMRC Enforcement visit. HMRC, with such action, can use a Controlled Goods Agreement, allowing them to secure items to sell to pay outstanding tax.

Enforcement action by HMRC can lead to the winding up of a limited company.  It can also mean a demand for security on account of future tax liabilities, rendering a business unable to trade.

TALK WITH AN EXPERIENCED HMRC NEGOTIATOR AT HBG ADVISORY TODAY!

Telephone:0800 612 5448

What is a Notice of Enforcement?

You may receive a notice of enforcement as a letter through the post. Their mission is to alert taxpayers of the escalation of your case of failure to pay tax. Further action, if not actioned, means the deployment of bailiffs to secure recovery.

Receiving an HMRC Enforcement Notice – Can Creditors Serve a Notice of Enforcement?

Yes! 

Creditors can send you a notice of enforcement, but also without a court order.

Other creditors must appeal to the court for an enforcement order, which involves paying a fee. To do so, the creditor must use Form N316, an application for order that the debtor attend court for questioning.

Once given, the creditor has the right to ask the court to send bailiffs to:

  • collect the outstanding debt, 
  • Take control of the debtor’s assets, 
  • Register a legal charge on the debtor’s property.

Is Distraint the same as Enforcement Action?

Yes!

Distraint refers to a legal process of seizing goods or property to pay a legal claim. HMRC, however, previously referred to enforcement as Distraint but replaced it with an ‘Enforcement Order’.’

Contact Number of HMRC Enforcement & Insolvency Service EIS?

The main EIS Office number is:

Phone03000 519 936

Ensure you have your reference number found at the top right-hand corner of any letter from HMRC.

Do HMRC use Bailiffs?

HMRC does not employ bailiffs. They, however, use independent bailiff companies to act on HMRC behalf to enforce goods seizure.

High Court Enforcement Officers (HCEO) also exist. HCEOs are empowered to recover debts of £5,000 or more, as per Writ of Control. 

Receiving an HMRC Enforcement Notice  – HMRC’s Enforcement Powers?

An HMRC Enforcement Officer will carry an identification card, so ask to see it and note the details.

If concerned, contact HMRC for verification.

Can HMRC bailiffs force entry?

They may legally force entry into commercial premises, provided a Justice of the Peace ha authorises them. However, residential and commercial premises may only enter premises through regular routes, and notably during specific times.

Is it still possible to enter negotiations at this point?

Yes!

However, you will still be issued with an enforcement notice. The notice allows you seven days to pay the debt. If you remain unable to do so, HMRC may still negotiate a Time to Pay arrangement. If maintained, it facilitates the removal action to seize goods.

The legal delivery of an enforcement notice can be by:

  • in person;
  • e-mail;
  • fax
  • affixed to the outside of the building.

Failure to pay means HMRC bailiffs will return.

Should the payment negotiations fail and you do not repay the amount owed within seven days, the bailiffs return. Therefore, they will attend your premises and take an inventory of your business’s assets, which is part of the controlled goods agreement. You will be required to sign the list, therefore no longer owning the assets, unless you pay the debts within seven days. Should you refuse to sign risk removal there, and then refer to Distraint of goods.

A Controlled Goods Agreement CGA or Walking Possession

IMPORTANT: Once you have signed a legally binding controlled goods agreement. You have authorised officers to inspect or take the goods, then listed as and when. The goods no longer remain under your ownership or control. Therefore, you must not transfer or promote the goods for sale. Indeed, you would be carrying out a criminal offence, as they are no longer your property.

The removal of goods enables the repayment of debt and enforcement action costs. However, it is essential to note. Goods sold at public auction have a much lower value than if sold through normal channels. Be warned!

What Options available?

If HMRC enforces PAYE or VAT Security, APNs, Loan Charges or outstanding PAYE/NIC or VAT, then early engagement is critical.

Your options are as follows:

For further free initial advice, please contact John Waller on 0800 612 5448.

Enforcement Action Threatened?

HMRC does not require court authority to seize goods to collect the tax debt owed. Therefore, immediately respond if threatened with enforcement action. HMRC, as with any other organisation, can make mistakes.

If you have received or had HMRC chase you, threatening to send an enforcement notice? Then don’t hesitate to contact John Waller on 0800 612 5448 for a free discussion in total confidence.

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Threat of HMRC Bailiffs
Threat of HMRC Bailiffs
Threat of HMRC Bailiffs
Threat of HMRC Bailiffs