Taxpayers Liable for Revenue Court Costs

From April 2012, HMRC will charge fixed costs on cases that are entered into the county court in England and Wales.

Where someone does not pay over to the Revenue the taxes that are owed by them and thereby forcing HMRC to initiate county court proceedings against them, they will be charged a fixed cost where judgment is awarded in HMRC's favour.

Currently, HMRC are unable to recover their costs when going through the county court and obtaining judgment and these changes will give the department the same rights of recovery as other creditors. Recovering the cost of court action will mean that compliant taxpayers do not have to bear the burden of such costs and introduces a degree of equitability by ensuring that those who stall paying their taxes do not gain an advantage.

Fixed costs will be based on a sliding scale set by the Ministry of Justice as follows:

Fixed Costs on Commencement of a County Court Claim

 

Claim value (£) Costs (£)
> 25 but < 500 33
> 500 but < 1,000 47
> 1,000 but < 5,000 53
> 5,000 but < 15,000 67
> 15,000 but < 50,000 90
> 50,000 but < 100,000 113
> 100,000 but < 150,000 127
> 150,000 but < 200,000 140
> 200,000 but < 250,000 153
> 250,000 but < 300,000 167
> 300,000 180

 

 

Fixed Costs on Entry of Judgment in a County Court Claim

 

Claim value (£) Costs (£)
< 5,000 15
> 5,000 20

 

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