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HMRC internal manual

Compliance Handbook

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HM Revenue & Customs
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The managing serious defaulters (MSD) programme: how to make a referral to the SDMU

How to make a referral to the Serious Defaulters Management Unit (SDMU) - PDAC cases

The Penalty Decisions and Actions Checklist (PDAC) has a new process which will allow you to create a new ‘Serious Defaulters Reporting System’ referral and send this electronically to the Serious Defaulters Management Unit (SDMU).

You are no longer required to wait for any appeal period to pass before you make a referral. However, you cannot close the case or claim Future Revenue Benefit until any appeal period has expired.

Complete the PDAC normally following the existing processes for authorisation, explaining the penalty, VAT292 extraction (where appropriate) and release of the penalty assessment through the National Penalties Processing System (NPPS) or settlement by contract.

The Serious Defaulters Reporting System referral is made when the PDAC is ready to be closed after authorisation.

Make sure the settlement actions are recorded together with dates then:

  • select Extract Data 
  • select SDRS Referral.

If the SDRS Referral button is inactive (greyed out), it means some required entries on the ‘Closure’ tab have been omitted. You must return to the Closure tab and correct any entries.

The system automatically changes the MSD and/or PDDD referral made? field to Yes and adds the date when SDRS Referral is selected.

When you select SDRS Referral on the PDAC you will automatically be transferred to a SEES inputting form.

The SEES input form will only ask you to provide data that is not already available from the PDAC. It is important you add as much detail as possible for the SDMU so monitoring of the person’s activity is not delayed.

Use Send Form on the tool bar to finish the process.

When all the actions have been carried out, the PDAC can be closed by selecting the Case Resolved - Lock PDAC button. This action cannot be reversed.

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How to make a referral to the Serious Defaulters Management Unit (SDMU) - non PDAC cases

For those cases where you do not have a PDAC you should continue to use the current manual system for making referrals using the Managing Serious Defaulters (MSD) report form held in the Penalties Toolkit. (This content has been withheld because of exemptions in the Freedom of Information Act 2000) New Case Reports, SDMU (LocalCOMP)(This content has been withheld because of exemptions in the Freedom of Information Act 2000)  

A new manual MSD report form for referrals will be available shortly.

Note: You must always make a referral to the SDMU using a PDAC if you have created one.