LSS50200 - Example 2: Use of collection and management powers

A manager within CCG has found a large number of opened enquiries which have not been progressed in anyway. As these were historic enquiries, and those involved with opening them have left HMRC or moved on, the manager in that area is seeking to use Collection and Management powers to close these enquiries wholesale.

His reasoning is that:

• If they were thought to be result in a large amount of revenue gain these would have been progressed
• The administration costs involved would potentially outweigh any revenue gain
• The resource could be better used on other cases within the business area

Of course, the LSS makes clear that pursuing a small risk where there is no wider impact and the cost of pursuing the risk would outweigh any past, present or future revenue gain or revenue from behaviour changes then this should not be pursued.

In this case, there is no understanding (or indeed attempt to understand) the amounts of revenue and the principles at stake here. Each case should be reviewed on a case by case basis to establish whether the admin costs will likely exceed any potential revenue. The wholesale closing of cases without any understanding behind the facts and revenues from each case is not LSS compliant.