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HMRC internal manual

Compliance Handbook

The managing serious defaulters (MSD) programme: what you need to do

You must not leave consideration of Managing Serious Defaulters (MSD) until the end of your check.

Once you have considered the facts and formed the view that the behaviour is deliberate, you should send the factsheet CC/FS14. This can be found in Excel SEES: Forms and Letters, General, Local Compliance, Factsheets. CH202050 gives more details about when to issue factsheet CC/FS14.

This is not the same process as for Publishing Deliberate Defaulter Details (PDDD). More information about this is at CH500500 and CH480700.

You may reach this point before an authorising officer has agreed your view on behaviour. If so you must tell the person that your view is subject to authorisation.

If you have already suspected evasion earlier and the case meets the Evasion Referral criteria in CH290100, you should have already made an Evasion Referral under CH290050.

If you have not, you must make a referral before you send factsheet CC/FS14 and you must not continue working the case until the Evasion Referral Team advises you how you should proceed see CH290200.

From 1 April 2013, you do not need to send to the Serious Defaulters Management Unit (SDMU) cases in which a voluntary disclosure is made and which meet the following criteria:

  • unprompted FA07 penalties mitigated by 100% Quality of Disclosure
  • S60 or S61 VATA1994 penalties mitigated by 85% or more
  • pre FA07 direct taxes penalties mitigated by 30% for Disclosure.