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HMRC internal manual

Debt Management and Banking Manual

Debt and return pursuit: VAT: recovery time table/indicators: enforcement indicator

The enforcement indicator (shown on, enforcement prints, and the registration screen on VISION) indicates whether there is an interest in a particular case.

The enforcement indicator has the following four values.

  • 0 - Not under enforcement - No debt on file
  • 1 - DMB control - Large Traders, automatic assessments will not be issued, manual intervention required.
  • 2 - DMB control - As above for all other traders
  • 3 - DMB control - Debt on file and suitable for automatic issue of assessments

The enforcement indicator can be manually set and amended by the input of form VAT 662.

The enforcement indicator is set at nil for the majority of customers. If a debt arises the computer will automatically set the enforcement indicator to value 3 and produce a new vat local action notice (LAN) which will be transferred to IDMS. A work item will be assigned to the IDMS 99 role to be picked up by Campaigns (the relevant campaign demand letter will be sent automatically).

The enforcement indicator is automatically reset to nil when a debt is cleared.

Enforcement indicator 1 or 2 will be set automatically if there are error returns on file and if the vat mainframe has been unable to issue an automatic assessment due to an inhibiting factor which creates a missing return. At the same time notification will be sent to the DTO via EF in the form of an enforcement D print.

The DTO should study the computer print to determine what has inhibited automatic action.

Any indicators should be actioned, e.g. missing periods assessed and error returns cleared. Suppression indicators should be investigated to ascertain who set them and why, before they are lifted.

If a review code is set which inhibits automatic action, the appropriate reviewing officer should be contacted to determine whether or not recovery/assessment action might take place.

Where an inhibit and/or review code has been lifted or cleared set the enforcement indicator to value 3 and on IDMS remove the PLAR signal and set next action as “issue IDMS99 Queue”.