Information that May Be of Use for Residents of Scotland

If you have been requested by HMRC to submit a payment for current or outstanding taxes, there are several ways in which you can make a payment. Following are some of the options available;

* You can make a payment in person at Elgin House, Edinburgh, Monday to Friday 8.30am - 5.00pm.
* You can make a payment in person at the Inland Revenue's Office at Cumbernauld or at any local Recovery Office. It should be noted that a payslip supplied will be needed when making your payment.
* By Post (cheques and postal orders are only accepted). Please make these cheques or postal orders out to Elgin House, 20 Haymarket Yards, Edinburgh EH12 5WT. Make the remittance payable to "Inland Revenue only" with your RMS Enforcement & Insolvency reference written on the reverse of the cheque/postal order. Cross it "Account payee only" if your Bank has not already done so. Please do not send cash through the post.
* You can make a payment via Bank giro - by cash or cheque (made payable to Inland Revenue only) with a payslip supplied on request, taken to any branch of your bank.
* You can make a payment via transfer from your Alliance and Leicester Commercial bank account using our payslip.
* You can make a payment at any Post Office - by cash or cheque (made payable to Post Office Counters Ltd) with a payslip supplied on request.
For more information on how to make a payment in Scotland, please visit the following link:http://www.hmrc.gov.uk/howtopay/5i.htm

What are Court of Session Proceedings?

If you or your company owe a creditor debt and they have been unable to secure payment, they may start a legal process to recover any outstanding debt. This legal process goes through the Court of Sessions. The Court of Sessions is equivalent to the High Court in England/Wales and is the highest Court in Scotland. By the creditor stating that they intend to start this action, this in itself is one of the tactics used to recover debt. Your local tax collector may warn you that this action is being considered by the creditor.

The Court of Session Processions are started by preparing a summons that details your debts and any expenses incurred recovering these debts. In addition, this summons must be sent to the Court of Sessions to be processed. Once the summons is process, the Court then authorizes that the summons be sent to you via recorded post, as well as served personally by a Messenger at Arms or a Sheriff Officer.

You can avoid Court of Session Proceedings by making a payment immediately or negotiating a repayment plan with your creditor. If you do not pay the amount of debt ordered by the Court, the Court will use its powers to enforce the decree. Usually the method of choice will be the one most likely that will lead to the repayment of the debt.

For more information regarding the Court of Session Proceedings, please visit the following link: http://www.hmrc.gov.uk/howtopay/6i.htm
Sequestration and Winding Up

Sequestration and Winding Up are methods used by the court to secure repayment of the debt. Sequestration in the Scots Law is the term used by England/Wales for bankruptcy. Winding up is a term used for when a business is appointed a liquidator and all assets are liquidated to repay a debt. If the business is no longer able to function viably after a debt is repaid, it is dissolved and no longer will it cease to exist. Any remaining money left after a company is dissolved will go to the shareholders.

For more information regarding this topic, please visit the following link:
http://www.hmrc.gov.uk/howtopay/7i.htm
Appointing an Insolvency Practitioner

It should be noted that the Court is in charge of appointing an insolvency practitioner or the Accountant in Bankruptcy as your Trustee during Sequestration. This Trustee will be in charge of your finances until your entire debt is paid off. For more information regarding the effect of an award of Sequestration, please visit the following link: http://www.hmrc.gov.uk/howtopay/8i.htm
What a Bankrupt Person Can Not Do

It is important to note that in Scotland, a bankrupt person can not act as a director or promote, form or manage a company, except in cases with leave of the Court. It should also be noted that a bankrupt person can not hold certain public offices, act as an insolvency practitioner or practice as a solicitor. In fact, bankrupt people can be found guilty of an offence punishable by both imprisonment and/or fine if they obtain credit in an amount of £250 or more, without them revealing to the other party that they are in fact bankrupt.

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Source: http://www.hmrc.gov.uk/howtopay/9i.htm