DMBM522270 - Debt and return pursuit: PAYE: End of Year: underpayments, surcharge and interest: IDMS
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Overview
When a new underpayment or interest work item is received, IDMS will initially decide whether it is suitable for automated processes or for clerical attention on C/W U/P work lists. New work items for clerical attention are initially placed on work lists according to monetary value starting with the highest first. These work items will have a next action of new and a next action date of when the work item was created on IDMS.
Surcharges are not subject to any IDMS automated actions. Instead these are placed on LBU (Large Business Unit) C/W PAYE UP work list.
Automated Processes
Linking rules - underpayment work items
IDMS will automatically link a new underpayment work item (even if surcharge or interest only) to an existing PAYE underpayment work item for the same employer, retaining same next action and date. IDMS will not link an underpayment to any other type of debt or return work item.
Underpayments that do not link will be referred to DMTC or issued with a payment reminder IDMS99.
Effect on open IDMS in-year work items of return receipt and underpayments
Logging of return.
When a paper P35 return is logged, BROCS is made WWTD, and any in-year IDMS work items cancelled.
Capture of return
The posting on BROCS of a PAYE end of year return charge or a CIS charge will result in the closure of any open IDMS in-year work item(s) and related actions for the same deduction year. If an underpayment is then created, BROCS will not issue any demand notes but send the underpayment straight to IDMS instead. IDMS will take the following actions:
If Enforcement signal set
- of L, M, C or J - underpayment will appear on same IDMS C/W role as in-year work item was on, with a Next Action of ‘Debt Review’ and Next Action Date of ‘TODAY’.
- excluding L, M, C or J - if there is an existing IDMS underpayment work item the new one will link to that, otherwise it will appear on ‘C/W PAYE UP’ role with a Next Action of ‘New’ and a ‘Next Action Date’ of ‘Today’.
IDMS will also create an entry on IDMS exception list when an in-year work-item with an enforcement signal has been closed and replaced with an underpayment. The exception lists should be worked on a daily basis.
If no enforcement signal is set and there
- is another open IDMS underpayment work item, the new underpayment will link retaining the same next action date and action
- are no other open IDMS underpayment work items, the new underpayment will appear on ‘C/W PAYE UP’ role with a Next Action of ‘New’ and a ‘Next Action Date’ of ‘Today’.
Underpayment amendments (+/-)
Amendments to underpayments in an IDMS automated process, for example from an amended return, will in most cases not affect the process. The exception being where there is an ‘enforcement’ signal set and the underpayment increases. In which case, IDMS will change the Next Action to ‘Update received’ with a Next Action Date of ‘Today’.
Debt Management Telephone Centre (DMTC)
Work items with telephone numbers are referred to DMTC for outbound telephone contact with the employer/contractor. These will leave DMTC either as a result of the work item being closed, telephone contact by DMTC or the window end date (length of time work item can remain at DMTC) being reached.
Work items that have not been closed will leave DMTC with a wrap-up code and these will determine IDMS next actions.
Automated telephone tracing
Where automated tracing of telephone numbers isunsuccessful, IDMS will issue an IDMS99 for payment.
IDMS underpayment and interest reminders
IDMS99s warning of legal proceedings can be issued depending on business priorities that are published in the appropriate Campaign Plan.