Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

COTAX Manual

From
HM Revenue & Customs
Updated
, see all updates

Pursuit: automatic and clerical pursuit: status and pursuit

This subject is presented as follows

Due date

Understanding the general state of an AP
AP status
Accounting Period status
Pursuit status
Change of pursuit status - general
Change of pursuit status - Existing pursuit status is LA
Change of pursuit status - Existing pursuit status is PLA
Change of pursuit status - Existing pursuit status is LA-ENF
Change of pursuit status to RFI

Due date

Pursuit of an AP should not begin until the due date (Word 49kb) has been reached. The due date depends on

  • Whether the AP is a Quarterly Instalment Payment case

And

  • The type of charge outstanding

You can view the quarterly instalment due dates in the credit interest / debit interest screens in function DINT (Display Interest Computation).

The normal due date for the tax charge can be viewed in the charge interest screens in function DINT (Display Interest Computation).

Top of page

Understanding the general state of an AP

The current status or general state of an AP is displayed on screen under three descriptions. These are

  • AP status
  • Accounting Period status

And

Top of page

AP status

The AP status has a value of ‘live’, ‘superseded’, ‘dormant’ or ‘exempt’.

You can view the AP status using Function DAPD (Display AP Details) screens COT213C and COT213D.

Top of page

Accounting Period status

The Accounting Period status is a combination of two factors

  • The AP status

And

  • Whether the AP is currently overpaid, underpaid or neither

The following table explains this.

AP Status Amount on the AP Accounting Period Status
     
LIVE No charge and no payments LIVE WORKING
  No collectible amount LIVE CLEARED
  Overpaid or underpaid LIVE WORKING
SUPERSEDED No collectible amount SUPERSEDED CLEARED
  Overpaid or underpaid SUPERSEDED WORKING
EXEMPT   EXEMPT

You can view the Accounting Period Status in Function VPPD (View Payment and Posting Details).

Top of page

Pursuit status

The Pursuit Status tells you about the stage of recovery reached on the AP. The AP has one of nine values. The values are

You can see the Pursuit Status using Function VPPD (View Payment and Posting Details) screen COT215C.

Note: If COTAX changes the Pursuit Status on an AP to LA automatically, the value of the local action pursuit signal is not changed. This signal is only changed when you set the clerical pursuit signal ‘Local Action’ to ‘Y’ using Function RAPP (Revise AP Pursuit).

Top of page

Change of pursuit status - general

The Pursuit Status may be changed automatically or clerically.

If the Pursuit Status changes the existing clerical pursuit status signals do not necessarily change.

If the amount collectible becomes nil, that is when the AP is balanced, the Action History Type (Word 52kb) in Function DPUR (Display Pursuit Action) shows ACCBAL. If the AP becomes unbalanced, for example, if an interest charge is raised, the Action History Type is changed to CANA/B. COTAX automatically resumes the appropriate next action for the amount collectible.

Details of changes of local Pursuit Status are as follows.

Top of page

Change of pursuit status - Existing pursuit status is LA

Where the existing Pursuit Status is LA, the Pursuit Status changes automatically where

  • Payment is received and posted to the COTAX record, reducing the amount collectible to nil
  • The collectible amount is amended to nil by a

    • Charge adjustment
    • Postponement posting

    Or

    • Stand-over release order

The Pursuit Status is changed to CLEARED.

If the Pursuit Status is changed back from CLEARED to AUTO, COTAX resumes payment application issue. This action is a potential source of complaint particularly where the company has been in correspondence with you. It is particularly important therefore that you set the PLA signal for the appropriate Permanent Local Action (PLA) cases.

You cannot change the LA Pursuit Status clerically.

Top of page

Change of pursuit status - Existing pursuit status is PLA

Where the existing Pursuit Status is PLA, COTAX automatically changes the Pursuit Status to AUTO when an overpayment arises.

If you are responsible for the case, you can cancel the PLA signal using Function RTPP (Revise Taxpayer Pursuit). This changes the Pursuit Status on all uncleared APs for the company.

Top of page

Change of pursuit status - Existing pursuit status is LA-ENF

Where the existing Pursuit Status is LA-ENF, COTAX automatically changes the Pursuit Status to CLEARED when the collectible amount becomes nil.

Where there is a collectible amount and you decide not to start enforcement proceedings or proceedings are abandoned, you can set the LA Enforcement Proceedings signal to ‘N’ using Function RAPP (Revise AP Pursuit). If there is no manual interest charge the Pursuit Status changes to LA or PLA.

Top of page

Change of pursuit status to RFI

COTAX automatically changes the Pursuit Status to RFI where

  • An AP becomes underpaid or overpaid and one of the following apply

  • An AP becomes underpaid and one of the following apply

    • The AP was cleared by manual remission
    • A suspension is present
    • A post dated cheque suspension is present
    • The AP was cleared by informal discharge
  • A repayment is generated on an AP as a result of

    • A further loss carry back posting
    • Relief given under S458 CTA 2010
  • Any of the above conditions apply and the AP was previously LA

COTAX generated RFI cases are included on the ‘Cases Working Clerically List’ (LCWC) for attention. For more information about this work list see COM114000 and COM140000 onwards.

For a list of functions to use in particular situations, see COM110011.