In Scotland HMRC recovers unpaid tax by asking a sheriff for a summary warrant under section 128 of the Finance Act 2008. The sheriff must grant it on a properly certified application, with no hearing on the debt, and a sheriff officer then serves a charge to pay giving 14 days before bank arrestment, earnings arrestment or attachment of goods can follow. In England and Wales, by contrast, HMRC officers take control of goods themselves without a court order and use the county court for most other remedies.
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What is a summary warrant?
A summary warrant is a court order that authorises recovery of a debt by Scottish diligence without the creditor first suing and obtaining a decree. Section 128 of the Finance Act 2008 applies where a person does not pay a sum payable to HMRC under any enactment or a contract settlement. It covers Scotland only.
The procedure in section 128 is:
- An HMRC officer applies to the sheriff, with a signed certificate.
- The certificate states that the people named have not paid, that the officer has demanded payment from each of them, and that 14 days from the demand have passed without payment, and it specifies the sum due from each person.
- The 14 day demand condition does not apply to VAT, Construction Industry Scheme deductions, or sums owed by someone in their capacity as an employer.
- The sheriff must grant the warrant on the application.
The warrant then authorises recovery by attachment, money attachment, earnings arrestment, and arrestment and action of furthcoming or sale. The sheriff officer’s fees and outlays for executing it are chargeable to the debtor.
Who does it apply to?
The procedure follows the debtor’s location and assets, not the type of tax. It is used against individuals, partnerships and companies whose property, bank accounts or employment are within the reach of the Scottish courts, and it covers any HMRC debt: VAT, PAYE, Corporation Tax and Self Assessment alike. Being a Scottish taxpayer for income tax rates is a separate question. A Scottish taxpayer with goods and accounts in England could face English enforcement, while a company registered in England with premises in Scotland could face a summary warrant.
The manual at DMBM670230 adds two limits. For a partnership debt, the sheriff officer can only attach or arrest partnership property, not the partners’ own, unless the warrant and charge name the individual partner. For a company debt, only the company’s assets can be taken, not the directors’ personal property.
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What happens after the warrant is granted?
HMRC officers cannot serve a charge to pay or carry out diligence in Scotland. A sheriff officer, a court official, does this on HMRC’s instructions (DMBM670050). The steps are:
- Charge to pay. This must be served before any diligence (DMBM670330). HMRC’s guidance says the debtor then has 14 days either to pay or to agree a payment plan. The cost of serving the charge is added to the debt.
- Debt advice and information pack. Individual debtors must receive this pack within the 12 weeks before attachment, earnings arrestment or third party arrestment (DMBM670340).
- Diligence. If the debt is still unpaid after 14 days, HMRC instructs the sheriff officer to use what it considers the most appropriate diligence to avoid moving to insolvency.
Which kinds of diligence can be used?
| Diligence | What it does | Key limits |
|---|---|---|
| Bank or third party arrestment | Freezes money held for the debtor by a bank or other third party | Freezing does not pay HMRC; it needs the debtor’s mandate or a court action of furthcoming (DMBM670930) |
| Earnings arrestment | The employer deducts from net pay and sends it to HMRC | Only on employers subject to Scottish jurisdiction; not available against self employed income (DMBM670930) |
| Attachment | Goods are valued and can be auctioned | Not inside a dwellinghouse, though garages, driveways and outhouses are allowed; not on Sundays or public holidays, or before 8am or after 8pm without the sheriff’s authority (DMBM670420, DMBM670450) |
| Money attachment | Takes cash and cheques held at business premises, such as a shop till | Not money kept in a dwellinghouse (DMBM670620) |
Section 11 of the Debt Arrangement and Attachment (Scotland) Act 2002 protects certain goods from attachment: tools of trade and a vehicle reasonably needed for the debtor’s business, each up to a value limit; a mobile home that is the debtor’s only or main residence; and tools needed to keep a garden or yard in order.
How does this differ from the rest of the UK?
| Point | Scotland | England and Wales |
|---|---|---|
| Taking goods | Attachment by a sheriff officer under a summary warrant | HMRC officers take control of goods under section 127 of the Finance Act 2008 with no court order |
| Bank accounts | Arrestment under the summary warrant | Direct recovery of debts, or a third party debt order after judgment |
| Wages | Earnings arrestment under the warrant | Attachment of earnings order from the county court |
| Property | HMRC’s guidance says property charging orders do not apply | Charging orders after a county court judgment |
| Chance to dispute before enforcement | None at the warrant stage; the sheriff must grant it | A defence can be filed to a county court claim |
In Northern Ireland HMRC uses distraint under a walking possession agreement, and direct recovery of debts is available there too, according to HMRC’s guidance.
Can the debtor stop it?
Because the warrant is granted without a hearing, the practical options are paying, agreeing terms during the 14 days after the charge, or using a statutory debt solution. The Debt Arrangement Scheme is one: HMRC’s manual says an approved debt payment programme stops creditors taking action to enforce payment. It is open to individuals living in Scotland with two or more creditors, but not to companies or partnership firms (DMBM900410). HMRC has only 21 days from the date the proposal is posted to respond (DMBM900420), and a condition of any programme is that future debts are paid as they fall due (DMBM900450).
A dispute about the tax itself is dealt with through HMRC and the tribunal, not the sheriff officer. An appeal, a late appeal or a missing return filed to replace an estimate should be raised with HMRC straight away so that it can pause collection.
What if the diligence fails?
If the charge to pay and later diligence do not clear the debt, the case is checked for transfer to HMRC’s Enforcement and Insolvency Service for sequestration, the Scottish equivalent of bankruptcy (DMBM671750). The manual sets referral thresholds based on the amount shown on the charge and the total debt. Companies face winding up in the same way as elsewhere; see HMRC winding up petitions.
How might this work?
Illustration only. A Glasgow joinery firm, trading as a partnership, owes £9,000 of VAT. Because VAT is excluded from the 14 day demand condition, HMRC applies for a summary warrant soon after the debt becomes due and unpaid, and the sheriff grants it. A sheriff officer serves a charge to pay at the workshop. The partners do nothing for 14 days, so HMRC instructs an arrestment of the firm’s bank account, which freezes £6,000. The partners then sign a mandate releasing the funds and agree monthly payments for the rest. The partners’ own cars could not be taken under a warrant in the firm’s name.
What mistakes do people make?
- Treating the charge to pay as just another letter. It starts a 14 day clock, after which diligence can follow without further court action.
- Arguing the tax with the sheriff officer. The officer enforces the warrant; disputes go to HMRC.
- Assuming English rules apply. There is no notice of enforcement or controlled goods agreement in Scotland; the process is charge, then diligence.
- Not getting debt advice early. Scotland’s Debt Arrangement Scheme can stop enforcement, but only once a programme is approved.
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Related Accountapedia entries
- HMRC search warrants and raids
- IHT421 probate summary
- Scottish Landfill Tax
- Completing the capital gains summary (SA108)
- Scottish Aggregates Tax
Sources
- legislation.gov.uk: Act 2008 c. 9, section 128
- legislation.gov.uk: Act 2008 c. 9, section 127
- GOV.UK: Manual page DMBM670230
- GOV.UK: Manual page DMBM670050
- GOV.UK: Manual page DMBM670330
- GOV.UK: What will happen if you do not pay your tax bill
- GOV.UK: Manual page DMBM670340
- GOV.UK: Manual page DMBM670930
- GOV.UK: Manual page DMBM670420
- GOV.UK: Manual page DMBM670450
Reviewed by Christine Anderson, Broker, Solar Protect. Last reviewed 24 October 2026. Part of Accountapedia, the Solar Protect guide to UK tax and accounting. This page is general information, not personalised advice.