HMRC Bailiffs are government officials who are responsible for enforcing unpaid tax debts.
They are authorized to seize and sell a person’s assets in order to recover the unpaid taxes. HMRC Bailiffs operate under the authority of the UK’s His Majesty’s Revenue and Customs (HMRC) department, which is responsible for collecting taxes and enforcing tax laws in the country.
They have the power to enter a person’s home or business premises in order to seize and sell assets, including vehicles, jewellery, and other valuable items.
Additionally, they have the authority to take and sell assets kept in banks or other financial institutions, such stocks or savings accounts. When seizing and selling assets, HMRC Bailiffs must adhere to stringent rules and procedures and give notice to the person whose assets are being seized.
It is crucial to get in touch with HMRC as soon as possible to discuss payment options and try to prevent having bailiffs take action if a person owes unpaid taxes and is unable to pay them. In order to assist the person in paying off their obligations, His Majesty’s Revenue and Customs could be prepared to put up a payment plan or provide additional support.
It is crucial to keep in mind that failure to pay taxes can result in serious repercussions, such as the seizure and sale of assets, and that it is in a person’s best advantage to cooperate with HMRC to settle outstanding tax bills.
What Powers do HMRC Bailiffs have?
HMRC Bailiffs have a number of powers that allow them to enforce unpaid tax debts. These powers are granted to them under the UK’s Taxes Management Act 1970, and they include the ability to enter a person’s home or business premises in order to seize and sell assets. They can also seize and sell assets that are held in banks or other financial institutions, such as savings accounts or stocks. They may also take control of a person’s salary or other income, or place a charge on a person’s property in order to recover unpaid taxes.
While carrying out their lawful duty they are required to follow strict guidelines and procedures when exercising their powers, and they must provide notice to the person whose assets are being seized.
| WHAT CAN HMRC BAILIFFS TAKE? | ANSWER |
|---|---|
| Can an HMRC bailiff forcibly enter your business premises? | They can force entry when they have official authorisation from a magistrate |
| Are they allowed to take things that do not belong to us? | Nothing hired, rented or borrowed can be seized by HMRC |
| Can HMRC bailiffs enter my home? | They cannot, unless your home is your registered business address. That being said, they can only take company assets. |
| What will happen to any goods that are seized? | Any goods that are removed will be sold at public auction |
Debt collection agencies and bailiffs authorised by HMRC are:
- 1st Locate (trading as LCS)
- Advantis Credit Ltd
- Bluestone Credit Management Ltd
- BPO Collections Ltd
- CCS Collect (also known as Commercial Collection Services Ltd)
- Moorcroft
- Oriel Collections Limited
- Past Due Credit Solutions (PDCS)
What rights HMRC Enforcement Officers have if they Visit My Business?
An enforcement officer has the legal authority to confiscate and sell the company’s assets if they visit a business to collect unpaid tax arrears. These privileges, which are granted to them under the UK’s Taxes Management Act of 1970, permit HMRC Bailiffs to enter the company’s facilities to conduct asset seizures and inspections.
A business owner has two options if they think an agent acted illegally or overstepped their bounds: report the issue to HMRC or seek legal counsel. Keeping in mind that failure to pay taxes can have serious repercussions, such as the seizure and sale of assets, it is in the best interest of a business owner to cooperate with HMRC to address unpaid tax arrears.
Controlled Goods Agreement CGA (previously Walking Possession)
A Controlled Goods Agreement (CGA), also known as a Walking Possession Agreement, is a voluntary agreement between a person who owes unpaid taxes and HMRC Bailiffs (also known as HMRC Enforcement Officers). A CGA allows the bailiffs to take control of the person’s assets, including their car or other valuable items, but allows the person to continue using the assets while they make payments to HMRC to pay off their debts.
Under a CGA, the person must agree to make regular payments to HMRC in order to pay off their debts, and they must also agree to not dispose of or transfer ownership of the controlled goods. If the person fails to make the agreed-upon payments or disposes of the controlled goods, the bailiffs can seize the assets and sell them to recover the unpaid taxes.
A CGA can be a good option for people who are unable to pay their unpaid taxes in full but wish to avoid having their assets seized and sold. However, it is important to remember that entering into a CGA is a serious commitment, and it is important to make the agreed-upon payments in order to avoid having the assets seized. If a person is unable to make the payments, they should contact HMRC to discuss their options.
Read more: What is an HMRC notice of enforcement?
Can an HMRC Bailiff Force Entry?
HMRC Bailiffs have the power to enter a person’s home or business premises in order to seize and sell assets in order to recover unpaid taxes. However, they are not allowed to use physical force or intimidation to gain entry. If a person refuses to let an officer into their home or business via peaceable entry, the agent may apply to the court for a warrant to allow them to enter the premises.
If an HMRC Bailiff has a warrant, they are allowed to use reasonable force to enter the premises. However, they are still required to follow strict guidelines and procedures when exercising their powers, and they must treat people with respect and dignity. If a person believes that an HMRC Bailiff has acted improperly or has exceeded their powers, they can report the incident to HMRC or seek legal advice.
Can an HMRC Enforcement Officer (Bailiff) Seize Assets from the Business?
Yes, an HMRC Enforcement Officer (also known as an HMRC Bailiff) can seize assets from a business in order to recover unpaid taxes. They have the power to enter a business premises in order to inspect and seize assets, including vehicles, jewelry, and other valuable items. They may also seize assets that are held in banks or other financial institutions, such as savings accounts or stocks.
Enforcement Officers not seize the following goods:
- that are classed as essential for the basic domestic needs of the Defendant and their family these include: clothing, bedding, furniture and other items of equipment
- Any goods that constitute ‘tools of the trade’ which are for the personal use of the Defendant in their trade or profession that have a maximum of up to £1,350), e.g. Tools, books, vehicles and other items of equipment
- Goods belonging to someone other than yourself, commonly called “the Third Party”.
- Items that are on hire purchase agreements or are leased or on rental agreements. E.g. Vehicles.
- Goods that have already been seized by any other High Court Enforcement Officer, Enforcement Agent or County Court Bailiff.
Read more: What to expect from a HMRC visit
Can Bailiffs Take Items That Don’t Belong To Me?
Bailiffs are authorised to seize and sell assets in order to recover unpaid taxes. However, they are required to follow strict guidelines and procedures when exercising their powers, and they are not allowed to seize items that do not belong to the person who owes the unpaid taxes.
If an Bailiff attempts to seize an item that does not belong to the person who owes the taxes on behalf of HMRC, the owner of the item can provide proof of ownership and request that the item be returned. If an officer refuses to return the item, the owner can report the incident to HMRC.
With over three decades of experience in the business and turnaround sector, Steve Jones is one of the founders of Business Insolvency Helpline. With specialist knowledge of Insolvency, Liquidations, Administration, Pre-packs, CVA, MVL, Restructuring Advice and Company investment.