New Insolvency Customer Service Manager role within HMRC
R3 has been working consistently with HMRC over the previous 12 months to improve relations between HMRC and the Insolvency Profession. We are pleased to announce that in response to conversations with R3 and representatives within the insolvency profession, HMRC will be improving the service to IPs as customers with the creation of a new Insolvency Customer Service Manager role.
This role will ensure the right people in HMRC are involved at the right time, to provide a seamless and effective service for the Insolvency Profession. Further guidance as to how this will work for Insolvency Practitioners will be published in the New Year via R3.
Initial decision notifications in CVLs
Changes introduced under Part 6 of the Insolvency Rules 2016 in relation to Creditor Voluntary Liquidations (“CVLs”) have led to challenges for HMRC being able to formally engage in the deemed consent process for meetings called under S100 IA 1986. More specifically, IR 6.14(3) allows for the decision date, for the decision of the creditors on the nomination of a liquidator, to be as little as three business days after the notice is delivered. Feedback from colleagues dealing with ongoing enquiries has found that although the notification may be received into the department, very often they fail to reach the HMRC officers in time for them to actively engage, and we are unable to trace if and where the notification has been made.
Furthermore, changes to the way in which notices are now advertised in the Gazette means that HMRC are no longer able to monitor companies entering into CVL in advance and so review for the purposes of determining if HMRC should engage in the process, in the same way as the department was able to in relation to meetings called under S98 IA 1986, prior to the Insolvency Rules 2016 being introduced.
In order to remedy this, HMRC would like to propose that all members provide the initial pre-appointment notifications for the deemed consent or virtual meeting procedures for all CVLs to a designated HMRC mailbox that will be set up and provided for IPs specifically in relation to CVL notifications only. This would then provide more clarity for members in terms of where in HMRC to forward all notifications and help ensure that HMRC can actively engage in the process when deemed appropriate.
The mailbox will be available for use with effect from 01 January 2018 and the address is as follows:
notifications.hmrccvl@hmrc.gsi.gov.uk
It would be very much appreciated if the subject line of the email could include the company name, CRN, and the decision date.
Please note that this mailbox is only for the initial pre-appointment notifications under the deemed consent or virtual meeting procedures.
HMRC will monitor use of the mailbox to ensure it is only used for its intended purpose, and where issues arise, will bring them to R3’s attention. Similarly, if you experience any issues with the mailbox, please let us know and those issues can then be reviewed by HMRC.
Obtaining Unique Tax Reference numbers in insolvency situations
In response to an issue identified as part of the joint R3/HMRC working parties, HMRC are now issuing Insolvency Practitioners with Company UTRs once their appointment has been updated on the relevant HMRC system. HMRC systems automatically identify company liquidations from information downloaded from Companies House. Upon the change in the companies registered office as a result of the liquidation HMRC will automatically issue notification of the UTR to the registered office address. This should remove the need for liquidators to contact HMRC to request this information and enable office holders to undertake more prompt tax investigations. Office holders should note however that the notification of the UTR by HMRC is currently on form CT41G, which is the same form issued to new companies. Office holders are therefore not required to follow any further instructions provided for in the notification, they should simply take the UTR reference from the form. No further action is therefore required.