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HMRC internal manual

Compliance Handbook

HM Revenue & Customs
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Publishing details of deliberate defaulters (PDDD): referring cases to Managing Serious Defaulters Programme (MSD) via SDMU: when to refer relevant penalties to MSD - the importance of meeting time limits

You must refer a case to MSD as soon as

  • you have one relevant penalty or a group of relevant penalties, see CH190640, and  
  • you have identified that the answer to all five of the publication questions is ‘yes’ for those penalties, see CH190600, and 
  • you have told the person that this is the case, see CH500500, and 
  • the qualifying relevant penalty, or the last of the qualifying relevant penalties in that group, is final, see CH190940.

This will not necessarily be at the end of your compliance check. If other matters that are not relevant to your consideration of PDDD have still to be resolved, do not delay your submission to MSD.

MSD has to complete the publication process and publish the person’s details within 12 months of the date that the qualifying relevant penalty or the last of the qualifying relevant penalties in a group whose qualifying PLR exceeds £25,000 becomes final, see CH191010 for time limits.

Even if not all the qualifying relevant penalties from the investigation are final’ we may be able to publish the person’s details in relation to the qualifying relevant penalty or penalties that have become final. That is why you must submit the case as soon as one or more qualifying relevant penalties whose total PLR exceeds £25,000 become final.

If you settle the case by contract settlement (direct taxes only), you must refer the case to MSD at the time when you issue the Letter of Acceptance.

If you assess the qualifying relevant penalties, they may become final at different times. It is good practice, where possible, to assess all the penalties at the same time. This will make it easier for you to keep track of when you should refer the case to MSD.

You must BF your papers for 45 days from the date on which you assess the latest qualifying relevant penalty. This allows time for an appeal to make its way through the system. Then

  • if there is no appeal at the 45th day, you must refer the case to MSD.
  • if there is an appeal against any of the penalty assessments, you must wait until the last of the appeals has been settled, by further discussion with the person, after an internal review or by the tribunal/court. ARTG2710 (direct taxes) and ARTG3410 (indirect taxes) summarise how appeals can be settled. You must follow the progress of the appeal and refer the case to MAS as soon as the last open appeal against the relevant penalties is settled.