Factoring Companies Guidebook

Crown Agencies have a legal right to set-off monies due to them such as VAT, PAYE/NI, Corporation Tax and any other Crown liabilities.

Concerns

Right of set-off is automatic where the contra is in the same departmental name however, leave of Court may be required where the asset and liability are in names of different Government Departments/Agencies. The likelihood of the Crown seeking such Court permission increases with the value of the potential claim and the abolition of Crown preference under the Enterprise Act.

Identification

Review the Sales and Purchase ledger listings for Government Agencies. Also obtain details of the outstanding VAT, PAYE/NI and Corporation Tax liabilities.

Government Departments where Crown Right of Set-off may apply:

Advisory, Conciliation and Arbitration Service

• British National Space Centre
• Central Office of Information
• Central Science Laboratory
• Child Support Agency
• Commission for Racial Equality
• Commissioners of Customs and Excise
• Commissioners of Inland Revenue
• Companies House
• Corporation of London
• Countryside Agency
• Countryside Council for Wales
• County Councils and Unitary Authorities
• Court Service
• Crown Estate Commissioners
• Crown Prosecution Service
• DTI
• Department of International Development
• Department for National Savings
• Department of Culture Media and Sport
• Department of Energy

Department of Food, Agriculture and Rural Affairs

Department of Health and Social Security (now split by S.I 1988 No.1843)

• Department of Trade and Industry

Department of Transport, Dept of Transport, Local Government and the Regions

• Department of Works and Pensions
• Department of Constitutional Affairs
• Department of Education and Skills

Devolved Governments - Scottish Executive, Welsh Assembly

• Director General of Fair Trading
• DVLA
• Environment Agency
• Export Credits Guarantee Department
• Financial Services Authority
• Food Standards Agency
• Foreign and Commonwealth Office
• Forestry Commission
• GCHQ
• General Register Office of Scotland
• Health and Safety Commission
• Health and Safety Executive
• Her Majesty's Stationery Office
• Her Majesty's Treasury
• Highways Agency
• Historic Scotland
• HM Prison Service
• Home Office Passport Agency
• Human Genetics Commissioner
• Information Commissioner
• Inland Revenue

Intervention Board for Agricultural Produce see DEFRA

• Lake District National Park Authority
• Land Registry
• London Development Agency
• London Underground
• Management and Personnel Office
• Manpower Services Commission
• Maritime Coastguard Agency

Medical and Healthcare Products Regulatory Agency

• Ministry of Defense
• National Audit Office
• National Criminal Intelligence Service
• Northern Ireland Office

Occupational Pensions Regulatory Authority (OPRA)

• Office of Arts and Libraries
• Office of Government Commerce
• Office of National Statistics
• Office of Science and Technology
• Office of Telecommunications
• Ofsted
• Ofwat
• Ordnance Survey
• Patent Office
• Privy Council
• Public Record Office
• Public Works Loan Board
• Registry of Friendly Societies
• Teacher Training Agency
• The Met Office
• The Pensions Service
• Trading Standards
• United Kingdom Hydrographic Office
• Welsh Office

Treatment

Ensure PAYE/NI and VAT liabilities have been paid to date and where arrears occur, notify your local Risk Manager, detailing the value of Crown Debtors present within the ledger.