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HMRC internal manual

Debt Management and Banking Manual

From
HM Revenue & Customs
Updated
, see all updates

Debt and return pursuit: Self Assessment: action by DMB Campaigns, Debt Technical Offices (DTO) and specialist teams: DMB campaigns and DMTC actions

DMB campaigns

Centrally controlled campaigns are run in order to make contact at the earliest opportunity. Campaigns are designed to select items with particular attributes as a way of prioritising work and are based on, for example the total debt value or the age of the work item.

Contact with the customer will be made either by:

  • the issue of automatic IDMS99 letter(s)
  • Debt Management Telephone Centre (DMTC) phone calls.

The DMTC has various sites though out DBM locations and each campaign is associated with a specific DMTC site and Debt Technical Office (DTO).

High Net Worth (previously CPR) / Expat cases

From February 2010, the majority of overdue debt and return HNW / Expat work items are selected for DMB Campaigns and specific pursuit arrangements will be made with the HNW / Expat teams.

IDMS99 letters

IDMS99 letters are tailored to each specific campaign’s requirements and the appropriate IDMS99 version will be issued with contact details for the DMTC or DTO associated to the campaign.

DMTC Campaigns

Outbound calls

Self Assessment (SA) debts and overdue returns in the (DMTC) are worked by operators with the user role of DMTC Advisor.

The DMTC uses predictive dialling equipment to dial the telephone number automatically. The Integrated Debt Management System (IDMS) presents the advisor with the taxpayer details when the telephone is answered. DMTC advisors also have access to the SA system.

The main aim of the pursuit action in the DMTC is to contact the taxpayer to:

  • secure overdue payments in full
  • secure receipt of outstanding returns
  • obtain information to progress the case
  • provide customer service assistance where necessary

or where this is unsuccessful either:

  • warn taxpayers of the consequences if they do not pay or file their return
  • allow cases to continue along the automatic IDMS99 process
  • transfer the case to the Debt Technical Office (DTO).

When transferred, the work item is visible on C/W SA IDMS Work List in the DTO associated to the specific campaign the following day.

Note: It is essential that customers are made aware of the potential consequences of non-payment and non-filing. Where it is appropriate for the taxpayer to have been set up for SA or a particular year, you should expect a return in every case where one has been issued. Do not accept any statement or assurance of nil liability as a substitute for the return.

No telephone number / number invalid or incorrect

Items that do not have a telephone number are directed by IDMS to an auto trace facility for tracing. Where a telephone number is traced items are then passed to the DMTC for a telephone call. Items where no telephone number is traced depending on the specific campaigns requirements, an appropriate version of the IDMS99 letter is issued or the work item passed to DTO for clerical review.

Note: Automatic letters are not issued for items relating to trust cases.

These will appear on the DTO Work List for clerical review.

Initial DMTC action

Outbound calls

Before making the telephone call you should:

  • familiarise yourself with the day’s campaign; this may help you determine your approach to the taxpayer
  • check you are talking to the taxpayer; for example, by confirming the postcode or date of birth (available from the Debt and Return details screen).

Inbound calls

The DMTC also receives inbound calls, generated as a result of outbound calls and automatically issued IDMS99 letters.

Where debt only is outstanding

During the telephone call you should:

  • confirm the amount outstanding from the debt and return details screen (remember the DMTC screen does not include accruing interest so you will need to view SA to see these details)
  • ask for payment in full
  • advise the taxpayer of legal proceedings, interest and surcharge and educate the taxpayer as appropriate
  • ‘wrap up’ the case adding any further conversation notes as necessary.

If the taxpayer is unable to pay in full consider a payment arrangement, see DMBM800000.

Where return only is outstanding

When a return is outstanding, you should:

  • confirm the year of the outstanding return(s) from the debt and return details screen
  • ask the taxpayer to file the return(s), offering any assistance and advice as necessary.

Where appropriate:

  • inform the taxpayer of the filing date and their responsibilities
  • promote online filing and its benefits
  • ask for payment due as a result of the filing of the return
  • warn the taxpayer of the potential consequences of not filing, that is Revenue determination or daily penalties, or both
  • ‘wrap up’ the case adding any further conversation notes as necessary.

Where both debt and return are outstanding

When both an SA debt and return is outstanding, you should:

  • confirm the amount outstanding and the year of the outstanding return(s) from the debt and return details screen (remember the DMTC screen does not include accruing interest so you will need to view SA to see these details)
  • ask for payment and the return(s), and any further monies due as a result of filing the return(s)
  • include the submission of any outstanding tax returns as a condition of any payment arrangement given.
  • warn the taxpayer of:

    • legal proceedings, interest and surcharge as appropriate if the debt is not paid
    • the consequences of not filing, that is Revenue determination or daily penalties, or both if the return is not filed
  • ‘wrap up’ the case adding any further conversation notes as necessary.

Where a time to pay agreement is made

You should:

  • set up the time to pay arrangement using the Instalment Arrangement (IA) function on IDMS. If the IA function cannot be used enter the details using IDMS function ACTION HISTORY.
  • ‘wrap up’ the case.

An IDMS7 confirmation letter along with any payslips or Direct Debit form is issued.

IDMS will:

  • monitor the arrangement
  • issue IDMS8 reminders automatically for monthly arrangements not paying by Direct Debit when payments are made late
  • issue an IDMS9 to cancel the arrangement if payment is still not made or alternatively
  • present the case for clerical review if it is not appropriate for automatic reminders and cancellation, such as direct debit cases.

All cases

When a phone call is completed, note the relevant DMTC screens with the result of the call by:

  • using free format text known as ‘conversation notes’
  • selecting one of a number of fixed text ‘wrap-up’ codes available.

The ‘conversation notes’ and ‘wrap up’ codes recorded by DMTC automatically flow to IDMS Action History. When a final ‘wrap up’ code is selected the item is either selected for an automatic IDMS99 letter or it appears on an IDMS work list in the DTO associated to the specific campaign for follow up action as necessary.

Items wrapped up by the DMTC for DTO review appear on the DTO IDMS work list the day following the wrap up with a next action of ‘Review’ or ‘IA Review’.