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HMRC internal manual

COTAX Manual

From
HM Revenue & Customs
Updated
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Pursuit: automatic and clerical pursuit: introduction

Companies are expected to pay their liabilities electronically by the due date (Word 49KB). To prompt companies to do this a sequence of payment reminders and a first payment application, usually issued as part of the Revenue Determination, are issued by COTAX. These show the action required by the company, the amount of any payment and the consequences of not paying on time. Additionally, payment applications to the company include any credit interest within the payments already made figures. Any debit interest charged or late payment interest accruing to the date of issue of the payment application is shown as ‘interest due’.

An electronic method of payment includes the following.

  • Bacs.
  • CHAPS.
  • Internet banking.
  • Payment over the telephone.
  • Direct debit.
  • Payment by debit or credit card.
  • Payment at a bank or post office.

Where automatic pursuit by COTAX fails to produce payment, COTAX refers recovery of the liability for clerical pursuit. The Debt Management Office deals with the majority of such APs but under certain circumstances the AP is referred to the Debt Management Telephone Centre at East Kilbride.

APs are referred for clerical pursuit:

  • automatically by COTAX or
  • clerically, if you have asked COTAX to stop the normal sequence and refer the AP or APs to you.

Sometimes, all the APs for a particular company need to be the subject of permanent clerical pursuit either in the Debt Management or Banking Operations office.

At any time the status of every AP is shown on the COTAX record and this indicates the nature of the pursuit action. Other information on the record indicates the exact stage of pursuit that has been reached.

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When pursuing the company, carefully take into account the particular circumstances of the case and make a suitable approach.

The Debt Management Office considers enforcement action where payment is still not forthcoming. See COM112000 for more information.

Cases subject to clerical pursuit at the Debt Management Office are reviewed monthly.