COM110093 - Pursuit: automatic and clerical pursuit: pursuit at the debt management office (Action Guide)
To carry out pursuit at the Debt Management Office, consider steps 1 - 30 below. The guide is presented as follows
Steps 1 – 8 Checking the company record - all cases
Steps 9 – 10 Checking for the business address and telephone number
Steps 11 – 14 Checking Quarterly Instalment Payment cases
Steps 15 – 19 Pursuing all outstanding liabilities
Step 20 Cases with a total liability less than £20,000
Step 21 Cases with a total liability of £20,000 or more
Steps 22 – 28 Issuing payment applications
Steps 29 – 30 Disposal of papers
Checking the company record - all cases
Note: As you will not be advised of all changes which may be made to a company’s record, it is vital that before taking any local action you
1. Thoroughly check the company’s record, in particular, the AP you are working
2. Use Function VPPD (View Payments and Postings Details) to check the type of tax charge that has been created.
3. Check the due date (Word 49KB) of the tax charge. In particular, pay careful attention where any type of assessment has been raised as there may be a 30 day appeal period. If necessary, contact the Inspector to confirm the due date. Where the due date has not yet been reached, B/F the case in IDMS until this date
4. Use Function VPPD (View Payment and Posting Details) to check if the summary of APs shows that a PA suspense record exists. If there is one
- Make sure there are no monies held on that record which could be reallocated to the amount outstanding
5. Use Function VTPR (View Taxpayer Record) to check if the NOTE signal is set to ‘Y’. Where it is, view the notes in ‘View Case Notes’ from Function VTPR for any relevance to the recovery of the debt
6. Use Function VPPD (View Payment and Posting Details) to check whether there is a part suspension. If there is
-
Use Function DSUS (Display Suspension History) to check the type of suspension
-
Ask the office that deals with appeals to stand over the suspended amount if ‘Pot. Appeal’ is shown under ‘Description’
Or
-
Consider cancelling the suspension in all other cases using Function RSUS (Record / Amend Suspension)
-
Pursue the collectible amount in all cases
7. If
- Function VPPD (View Payment and Posting Details) shows a POSTING DETAILS Type of LOS or ACT
And
-
Function RAPP (Revise AP Pursuit) shows the Clerical Interest Indicator is set to ‘Y’
-
See COM110120
8. Use Function VTPR (View Taxpayer) (VIEW COMPANY DETAILS option) to check if the Language signal is set to ‘W’. If it is
- See the Action Guide ‘Welsh Language Cases’ at COM110162
Checking for the business address and telephone number
9. Use Function VTPR (View Taxpayer) to check for a business address
10. Where the Registered Office is the same as the agent’s address and there is no alternative communication address
- Use BROCS or EBS to check for a PAYE record. Where a record is found look for the business address and telephone number
Where there is no PAYE record
-
Contact the office responsible for the business address and telephone number
-
Use Function ACOM (Amend Communication Address) to update the COTAX record with the business address and telephone number
Note: In Debt Management Offices, where an address is changed on the company’s record, COTAX does not change the Debt Management Office responsibility. For cases that need to be transferred to another Debt Management Office, use Function TRCA (Transfer Case)
Checking Quarterly Instalment Payment cases
11. Use Function DAPD (Display AP Details) to check if the Quarterly Instalment Payment signal is set to ‘Y’
12. Where it is and today’s date is after the final instalment due date but before the normal due date, use Function CINT (Compute Interest) to calculate the net amount of debit interest
13. Include the net amount of debit interest when pursuing the outstanding tax
14. In cases where the normal due date has passed, COTAX automatically calculates credit interest and debit interest and displays the amounts in Functions DINT (Display Interest Computation) and VPPD (View Payment and Posting Details)
Pursuing all outstanding liabilities
15. Cross reference other collectible amounts working locally for the same company at the same time
-
For PAYE
-
Trace the company reference on BROCS or EBS
Then, if one is found
-
Check for outstanding months / liability
-
For SAFE
-
Check on SAFE for any CT charges using the COTAX UTR
16. Check for any other collectible liability which is not yet working LA (Word 28KB), such as another AP that may be working clerically at Banking Operations
17. Make appropriate cross references in IDMS using Function Cross Reference, see IDMS Good Practice Guide (3)
18. Consider whether linking is appropriate, see IDMS Good Practice Guide (9)
19. Check the interest position and include
-
Any Credit / Debit interest that is due as shown in Function DINT (Display Interest Computation) or on IDMS. Where none is shown, check to see if the Credit / Debit Interest Indicator (CDII) (Word 29KB) signal is set. Where it is, consider whether you need to calculate any Credit interest and / or Debit interest charges clerically. For further information on how to calculate interest see COM80000
-
Late payment interest accrued to date in the amount applied for as shown in Function VPPD (View Payment and Postings Details), or through the Interest Calculator function in IDMS. Warn the company that late payment interest continues to accrue daily on unpaid tax where pursuit is taking place after the normal due date
-
Warn the company that debit interest continues to accrue daily on any unpaid tax for a Quarterly Instalment Payment case where pursuit is taking place before the normal due date
Cases with a total liability less than £20,000
20. For cases with a total liability less than £20,000 the responsible officer is to
-
Deal with all post on the day of receipt so far as possible
-
Ensure effective action is taken as appropriate, by letter, telephone or personal call, see the REPE process map
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Promptly review the case with a view to taking Distraint / County Court Proceedings, see IDMS Helpcard 3
And where local enforcement has not been or is unlikely to be successful
- Refer the case promptly for recovery by the Enforcement & Insolvency Service
Cases with a total liability of £20,000 or more
21. For cases with a total collectible liability of £20,000 or more see COM110102
Issuing payment applications {#IDASCCDI}
22. If you consider the issue of routine payment applications is appropriate
- Decide the payment application(s) you want to issue
Note: The issue of payment applications is not considered appropriate in cases where the outstanding amount is £100,000 or more or in cases where a DN1 has already been issued
23. If you wish to issue one payment application only
- Use Function RAPP (Revise AP Pursuit) to set the appropriate Action Type and Action Date under Revised Action Details
24. If you wish to issue more than one payment application
- Use Function RAPP (Revise AP Pursuit) to set the appropriate first Action Type and Action Date under Revised Action Details
Note: The actions have to be set separately as only one next action item can be set at any one time
25. B/F the case on IDMS to the Next Action and Next Action Date
26. At the B/F date
- Use Function RAPP (Revise AP Pursuit) to set the appropriate second Action Type and Action Date under Revised Action Details
27. B/F the case on IDMS to the second Action Date
28. Repeat steps 24 and 25 as necessary
Disposal of papers
29. When an AP no longer has a Pursuit Status of LA, LA-ENF (Word 27KB) or PLA (Word 28KB) file any papers
- In order of the UTR
Or
-
With other case papers kept separately, for example
-
Remission cases
-
Proceedings cases
30. Retain for one year