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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: Machine Games Duty (MGD): IDMS and debt pursuit

ETMP sends all outstanding debts at the relevant due date to IDMS for debt pursuit. These debts are assigned to the OU 368215 for the EECDT. DMB campaigns manage debt pursuit.

ETMP and IDMS

Return charges are created on ETMP on the MGD Contract Account on receipt of the quarterly return. The due date for payment is the same as the due date for the return. ETMP reconciles the charges to the payments received using payment allocation rules, see DMBM542040.

Where ETMP identifies an underpayment it sends an underpayment work item to IDMS. ETMP does not issue reminders for unpaid MGD debts.

If a return is not received, ETMP automatically calculates the estimated amount due and creates and issues a central assessment charge 14 days after the return due date. ETMP issues the charge notification and payslip to the MGD operator and, if unpaid after a further 14 days, sends the debt to IDMS.

ETMP also manages penalties for late-filing of a return and late-payment. ETMP automatically calculates the penalty amount, issues the penalty notice and sends the debt to IDMS 14 days after the 30 day appeal period if unpaid. The penalty start date is displayed on IDMS View Work Item Details as “Start of penalty date”.

ETMP automatically sends IDMS details of:

  • outstanding charges
  • payments allocated to charges working with IDMS
  • changes to designatory data (only when a new LAN is sent).

IDMS MGD reference number

The IDMS reference number is the MGD registration number less the leading zeros. For example, the:

  • MGD registration number is 14 characters, XAM00001234567
  • IDMS MGD reference number is 10 characters, XAM1234567.

Payment reference number

The ETMP SAFE charge reference number is supplied on printed outputs for payment. In the absence of a payslip, MGD operators should use their MGD registration number as the payment reference. This is made up of 14 characters; for example, XAM00001234567. They can find this on either the:

  • ‘At a glance’ page if they have signed up to use the MGD online service
  • registration certificate issued by HMRC.

The payment allocation rules can be found in DMBM542040.

IDMS work items

New IDMS work items

The following new IDMS Work items have been introduced for MGD:

  • Work Item Type: MGD Assessment
  • Work Item Sub Type:

    • Machine Games Duty - Instalment Number =30
    • MGD Central Assessment - Instalment Number =31
    • MGD Officers Assessment - Instalment Number = 32
  • Work Item Type: MGD Penalty
  • Work Item Sub Type:

    • MGD Late Filing Penalty - Instalment Number = 33
    • MGD Late Payment Penalty - Instalment Number = 34

The ASN format is “YYYYnm” where “YYYY” is the tax year, “n” is the instance of the penalty within the period (for example, 1, 2 or 3) and “m” is the period within the year represented by a letter between A and L with A=1 and L=12.

  • Interest on late-payment
  • Interest on ETMP generated late-filing and late-payment penalties
  • Interest on Taxes Management Act penalties

The default role is the C/W Excise/Customs worklist for these work items except for MGD Taxes Acts Penalties which will be on C/W Misc worklist as a singleton (single work item). If linked to other MGD work items, it can then adopt the master’s role. The ‘master reference’ is the reference chosen to carry the set around the system and is the reference that appears on the worklist. The next action and date for the set is shown against the master reference only.

Automatic linking of the new work items in IDMS

IDMS automatically links work items that are of the same type together where appropriate. This may be because the work items are on the same process path.

Manually linking of the new work items in IDMS

You can manually link and unlink MGD work items to and from any other work item types. You should only link work items together which are following the same process path.

For more information on linking, please refer to IDMSUG500700.

Create and amend MGD work items

As with other IDMS work items you can create and update the new MGD work items online using the IDMS functions Create Work Item or Amend Work item. For guidance on how to use these functions, you should refer to:

  • IDMSUG500300 - Create Work Item
  • IDMSUG500200 - Amend Work Item.

Enforcing MGD debts (England and Wales)

You can use the County Court Bulk Centre (CCBC) for MGD work items. You can also use it for MGD/VAT-linked work items; however, you cannot use CCBC for any other combination of linked work items which includes MGD and must instead prepare a manual claim.

Where there are signals that prevent the automated CCBC process, you must prepare a manual claim.

Enforcing MGD debts (Scotland)

Refer the debt for summary warrant proceedings.

Interest on Particulars of Debt (POD)

There are local instructions in place for these cases.

Designatory details on IDMS

When the taxpayer record is first set up, or whenever a new MGD work item is sent to IDMS, ETMP sends the relevant designatory data for the record. Changes to designatory data are sent to IDMS providing there is an open MGD work item on IDMS.

If there are no open work items on IDMS, ETMP sends the updated designatory data to IDMS the next time a work item is created.