The managing serious defaulters (MSD) programme: who will not be included in MSD?
The system will count, but not include, any person making a full unprompted disclosure with full reductions for the quality of their disclosure of a deliberate behaviour to HMRC.
The Serious Defaulters Management Unit (SDMU) will decide who is included in the programme but you should issue the factsheet at the appropriate time once you have considered the facts and formed the view that the behaviour is deliberate. The factsheet can be found in Excel SEES: Forms and Letters, General, Local Compliance, Factsheets. For more details about when to send factsheet CC/FS14 - Managing Serious Defaulters see CH202400.
From 1 April 2013, you do not need to send to the 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.