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: permanent local action (PLA) cases

Permanent local action (PLA) cases are those where the Debt Management Office is responsible for all recovery action. The only request for payment issued by COTAX in a PLA case is a payslip included with any

  • Notice to deliver
  • Penalty determination (main, amended or further)
  • Revenue Determination or Revenue Amendment
  • Jeopardy Amendment

The remainder of this subject is presented as follows

When PLA is appropriate
Action following the setting of PLA
Cancellation of Permanent Local Action

When PLA is appropriate

PLA is appropriate for any of the following

  • Insolvency
  • Ceased / struck-off cases
  • Objections to striking off
  • Cases selected by the Debt Management Office where it is considered that all recovery action for all APs is best dealt with locally
  • Welsh language cases
  • Requests for time to pay
  • Any cases where Banking Operations need to refer the AP for clerical action at the Debt Management Office

A case is made PLA either

  • Automatically by COTAX when

    • The Insolvency signal is set to ‘I’, ‘V’, or ‘A’

    (This content has been withheld because of exemptions in the Freedom of Information Act 2000)

    • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • Clerically by setting the Permanent Local Action signal to ‘Y’ using Function RTPP (Revise Taxpayer Pursuit)

Notes:

1. It is important that the PLA signal is set where pursuit of an AP is to be dealt with clerically in the Debt Management Office. If the signal is not set the case could be selected for Automatic Enforcement Proceedings by IDMS. The setting of the PLA signal ensures that the case will not be selected.
   
2. Where there is a SAFE CT liability that needs to be referred immediately to DMB, the Miscellaneous Charges unit should be contacted to accelerate the case to LA. All Welsh Language cases in SAFE are automatically made LA.

Top of page

Action following the setting of PLA

When a COTAX selected case is made PLA for each AP, the Pursuit Status is AUTO and there is a charge on the record, COTAX

  • Sets the Pursuit Status on the AP to PLA

And

  • Refers the AP to the Debt Management Office for clerical pursuit

Where the Pursuit Status is LA (Word 28KB) or LA-ENF (Word 27KB), leave the Pursuit Status unchanged until an assessment is amended.

So, if you want to know if a case is PLA, you should check the Permanent Local Action signal on Function RTPP (Revise Taxpayer Pursuit) not the Pursuit Status on an individual AP.

As long as the PLA signal remains set to ‘Y’, COTAX refers pursuit of any AP which becomes collectible to you for clerical action.

Top of page

Cancellation of Permanent Local Action

Note: Only Debt Management Offices should cancel Permanent Local Action (PLA).

You should cancel PLA only where

  • There is no overdue collectible liability outstanding

And

  • The Debt Management Office considers that PLA is no longer appropriate. This applies to cases where Banking Operations have set the PLA signal to prevent the case being selected for Automatic Enforcement in IDMS

Note: You should only cancel PLA if you have responsibility of all uncleared APs for the company.

You cancel PLA by setting the Permanent Local Action signal to ‘N’ using Function RTPP (Revise Taxpayer Pursuit).

When you cancel PLA, COTAX reviews the Pursuit Status for each AP working locally and where appropriate amends it as follows

AP pursuit status Effect of cancelling PLA
   
LA or LA-ENF Pursuit Status left unchanged
PLA * Where the CII (Word 32KB) is set to ‘Y’
* COTAX changes the Pursuit Status on the AP to LA
  • Otherwise

    • It sets the Pursuit Status on the AP to AUTO

For a list of functions to use in particular situations, see COM110071.

For legislation applying to this subject, see COM110072.