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HMRC internal manual

Debt Management and Banking Manual

From
HM Revenue & Customs
Updated
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Debt and return pursuit: VAT: deregistered customers and revenue losses: reminder listings

Computer lists D1689 (Deregistration Section) are produced quarterly when the LVO enforcement indicator is set and 6 months have passed since the date of de-registration or when Form VAT 30 was input, whichever is the later and there is:

  • an outstanding debit ledger balance
  • an outstanding credit ledger balance
  • a missing liability
  • an error return
  • an outstanding credibility query.

A registration number will continue to appear on each quarterly list until the criteria for inclusion on the list no longer applies. It is important to take action to clear these cases so the registration can proceed to redundancy. Consequently, the VAT Registration Service’s Deregistration section will periodically contact Debt Management and ask them to take action on VAT registrations appearing on these prints.

Examine the latest accounting information to decide if one or more of the following actions are necessary:

  • make sure the facility to pay by instalments has been agreed and the instalment indicator is set (if applicable; that is if payments have been made and the debit balance has been reduced in the last six months)
  • consider recovery action (This content has been withheld because of exemptions in the Freedom of Information Act 2000) (where the instalment indicator is set but no payments have been made and the debit balance has not been reduced in the last six months)
  • ask Accounting and Adjustments to deal with the credit according to the circumstances of the case(This content has been withheld because of exemptions in the Freedom of Information Act 2000)  
  • issue assessments, input nil pro-formas or obtain returns to establish missing liabilities. Nil pro-formas must not be input for periods that contain an assessment (including period 99/99)
  • authorise distraint, recommend for civil recovery (This content has been withheld because of exemptions in the Freedom of Information Act 2000) to clear ledger balances, if appropriate
  • arrange correction of error returns
  • make sure credibility queries are being dealt with
  • set repayment inhibits.