C3C2C7C8C9C13C14C22C15C17C16C18C19C20C21 PART VI COLLECTION AND RECOVERY
Pt. 6 applied (with modifications) by The Income Tax (Sub-contractors in the Construction Industry) Regulations 1993 (S.I. 1993/743), reg. 14(2) (revoked (6.4.2007) by S.I. 2005/2045, Sch. 2)
Pt. 6 modified (with effect in accordance with s. 117(4)(5) of the amending Act) by Finance Act 1998 (c. 36), Sch. 18 para. 39(2)(a) (with Sch. 18 para. 59(2)); S.I. 1998/3173, art. 2
Pt. 6: power to apply conferred (with effect in accordance with s. 114(2) of the amending Act) by Finance Act 1999 (c. 16), Sch. 17 para. 17(a)
Pt. 6 applied (with modifications) by The Income Tax (Employments) Regulations 1993 (S.I. 1993/744), reg. 49(7) (as amended (19.8.1999) by The Income Tax (Employments) (Amendment No. 3) Regulations 1999 (S.I. 1999/2155), regs. 1(1), 7)
Pt. 6 applied (with modifications) (E.W.) (1.4.2000) by Education (Student Loans) (Repayment) Regulations 2000 (S.I. 2000/944), regs. 1(1), 23, 45(4)
Pt. 6 applied (with modifications) (N.I.) (1.4.2000) by The Education (Student Loans) (Repayment) Regulations (Northern Ireland) 2000 (S.R. 2000/121), regs. 1, 23, 45(4)
Pt. 6 modified (1.8.2002 for specified purposes, 1.1.2003 for specified purposes, 6.4.2003 for remaining purposes) by Tax Credits Act 2002 (c. 21), s. 61, Sch. 2 para. 7(1); S.I. 2002/1727, art. 2
Pt. 6 applied (with modifications) (8.12.2002) by The Statutory Paternity Pay and Statutory Adoption Pay (Administration) Regulations 2002 (S.I. 2002/2820), regs. 1, 8(4) (with reg. 8(5)(6))
Pt. 6 applied (with modifications) (N.I.) (8.12.2002) by The Employment (Northern Ireland) Order 2002 (S.I. 2002/2836), art. 1(2), Sch. I paras. 2(2), 4(3); S.R. 2002/356, art. 2(2), Sch. 1 Pt. 2
Pt. 6 applied (with modifications) (E.W.S.) (8.12.2002) by Employment Act 2002 (c. 22), s. 55(2), Sch. 1 paras. 2(2), 4(3); S.I. 2002/2866, art. 2(2), Sch. 1 Pt. 2
Pt. 6 applied (with modifications) (with effect in accordance with reg. 1(2) of the amending S.I.) by The Working Tax Credit (Payment by Employers) Regulations 2002 (S.I. 2002/2172), regs. 1(1), 14(4)
Pt. 6 applied (with modifications) by The Statutory Maternity Pay (Compensation of Employers) and Miscellaneous Amendment Regulations 1994 (S.I. 1994/1882), reg. 7A(4) (as inserted (6.4.2003) by S.I. 2003/672, regs. 1(1), 6)
Pt. 6 applied (with modifications) by The Statutory Maternity Pay (Compensation of Employers) and Miscellaneous Amendment Regulations (Northern Ireland) 1994 (S.I. 1994/271), reg. 7A(4) (as inserted (6.4.2003) by S.I. 2003/672, regs. 1(1), 11)
Pt. 6 modified (6.4.2003 for specified purposes) by Tax Credits Act 2002 (c. 21), ss. 29(3), 61; S.I. 2002/1727, art. 2
Distraint and poinding
C1C4C1061 Distraint by collectors.
1
If a person neglects or refuses to pay the sum charged, upon demand made by the collector, F1the collector may distrain upon the goods and chattels of the person charged (in this section referred to as “the person in default”.
2
For the purpose of levying any such distress, F2a justice of the peace, on being satisfied by information on oath that there is reasonable ground for believing that a person is neglecting or refusing to pay a sum charged, may issue a warrant in writing authorising a collector to break open, in the daytime, any house or premises, calling to his assistance any constable.
Every such constable shall, when so required, aid and assist the collector in the execution of the warrant and in levying the distress in the house or premises.
3
A levy or warrant to break open shall be executed by, or under the direction of, and in the presence of, the collector.
4
A distress levied by the collector shall be kept for five days, at the costs and charges of a person F3in default.
5
If the person F4in default does not pay the sum due, together with the costs and charges F5. . . , the distress shall be appraised by F6one or more independent persons appointed by the collector, and shall be sold by public auction by the collector for payment of the sum due and all costs and charges.
F7. . . Any overplus coming by the distress, after the deduction of the costs and charges and of the sum due, shall be restored to the owner of the goods distrained.
F86
The Treasury may by regulations make provision with respect to—
a
the fees chargeable on or in connection with the levying of distress, and
b
the costs and charges recoverable where distress has been levied;
and any such regulations shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of the House of Commons.
62 Priority of claim for tax.
1
F9If at any time at which any goods or chattels belonging to any person (in this section referred to as “the person in default”) are liable to be taken by virtue of any execution or other process, warrant, or authority whatever, or by virtue of any assignment, on any account or pretence whatever, except at the suit of the landlord for rent, F9the person in default is in arrears in respect of any such claims as are referred to in subsection (1A) below, the goods or chattels may not be so taken unless on demand made by the collector the person at whose suit the execution or seizure is made, or to whom the assignment was made, pays or causes to be paid to the collector, before the sale or removal of the goods or chattels, all F9such sums as have fallen due at or before the date of seizure.
F101A
The sums referred to in subsection (1) above are—
a
sums due from the person in default on account of deductions of income tax from F23taxable earnings (as defined by section 10 of ITEPA 2003) paid during the period of twelve months next before the date of seizure, being deductions which the person in default was liable to make under F24PAYE regulations less the amount of the repayments of income tax which he was liable to make during that period; and
b
sums due from the person in default in respect of deductions required to be made by him for that period under section 559 of the principal Act (sub-contractors in the construction industry).
2
F11If the sums referred to in subsection (1) above are not paid within ten days of the date of the demand referred to in that subsection, the collector may distrain the goods and chattels notwithstanding the seizure or assignment, and F11may proceed to the sale thereof, as prescribed by this Act, for the purpose of obtaining payment of the whole of F11those sums, and the reasonable costs and charges attending such distress and sale, and every collector so doing shall be indemnified by virtue of this Act.
F123
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C5C1163F15Recovery of tax in Scotland
P11
Subject to subsection (3) below, in Scotland, where any tax is due and has not been paid, the sheriff, on an application by the collector accompanied by a certificate by the collector—
a
stating that none of the persons specified in the application has paid the tax due by him;
b
stating that the collector has demanded payment under section 60 of this Act from each such person of the amount due by him;
c
stating that 14 days have elapsed since the date of such demand without payment of the said amount; and
d
specifying the amount due and unpaid by each such person,
shall grant a summary warrant in a form prescribed by Act of Sederunt authorising the recovery, by way of the diligences mentioned in subsection (2) below, of the amount remaining due and unpaid.
2
The diligences referred to in subsection (1) above are—
F21a
an attachment;
b
an earnings arrestment;
c
an arrestment and auction of furthcoming or sale.
3
Paragraph (c) of subsection (1) above shall not apply to an application under that subsection [F13insofar as it relates to sums due in respect of—
a
deductions of income tax which any person specified in the application was liable to make under F25PAYE regulations; or
b
deductions required to be made under section 559 of the principal Act (sub-contractors in the construction industry) by any person specified in the application.]
F144
In this section references to amounts of tax due and references to sums due in respect of deductions include references to amounts which are deemed to be—
a
amounts of tax which the person is liable to pay by virtue of the Income Tax (Employments) Regulations 1973; or
b
amounts which the person is liable to pay by virtue of the Income Tax (Sub-Contractors in the Construction Industry) Regulations 1975.]
C6C1263AF15 Sheriff officer’s fees and outlays.
1
Subject to subsection (2) below and without prejudice to F22section 39(1) of the Debt Arrangement and Attachment (Scotland) Act 2002 (asp 17) (expenses of attachment), the sheriff officer’s fees, together with the outlays necessarily incurred by him, in connection with the execution of a summary warrant shall be chargeable against the debtor.
2
No fee shall be chargeable by the sheriff officer against the debtor for collecting, and accounting to the collector for, sums paid to him by the debtor in respect of the amount owing.
64Priority of claim for tax in Scotland.
1
F16If at any time at which any movable goods and effects belonging to any person (in this section referred to as “the person in default”) are liable to be taken by virtue of any poinding, sequestration for rent, or diligence whatever, or by any assignation, F17the person in default is in arrears in respect of any such sums as are referred to in subsection (1A) below, the goods and effects may not be so taken unless on demand made by the collector the person proceeding to take the said goods and effects pays F17such sums as have fallen due at or before the date of poinding or, as the case may be, other diligence or assignation.
F181A
The sums referred to in subsection (1) above are—
a
sums due from the person in default on account of deductions of income tax from F26taxable earnings (as defined by section 10 of ITEPA 2003) paid during the period of twelve months next before the date of poinding, being deductions which the person in default was liable to make under F27PAYE regulations less the amount of the repayments of income tax which he was liable to make during that period; and
b
sums due from the person in default in respect of deductions required to be made by him for that period under section 559 of the principal Act (sub-contractors in the construction industry).
2
F19If the sums referred to in subsection (1) above are not paid within ten days of the date of the demand referred to in that subsection, the sums shall, notwithstanding any F19proceedings for the purpose of taking the said moveable goods and effects, be recoverable by poinding and selling the said moveable goods and effects under warrant obtained in conformity with the provisions contained in section 63 above.
F203
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Pt. 6 applied by The Income Tax (Entertainers and Sportsmen) Regulations 1987 (S.I. 1987/530), reg. 11(3)