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HMRC internal manual

Debt Management and Banking Manual

From
HM Revenue & Customs
Updated
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Corporation tax: Pursuit of outstanding debt

Clerical exception cases

Time limits for action

The time limit for actioning an item after appearing on the IDMS C/W CT New Business worklist depends on the monetary value of the case;

  • within 14 days for £20,000 and below
  • within 10 days for £20,000 to £99,999 and
  • within 3 days for £100,000 and over.

Initial action

Within the time limit specified above

  • review the case to establish the business address
  • note IDMS and COTAX accordingly
  • establish whether the company is still trading
  • check the companies filing and payment compliance history.

Business address in another area

Where the business address is in another recovery area (or for Scotland the registered office is in England, Wales or Northern Ireland), transfer the case to the appropriate office.

Business address in recovery area

Where the business address is in your area,

  • telephone the company and seek payment (if you have to trace a telephone number ensure that you note the COTAX record)
  • confirm the business address of the company
  • issue IDMS10 where payment is not obtained (IDMS9 if instalment arrangement failed)
  • auto B/F 21 days or B/F IDMS10 for 7 calendar days after payment promise date.

If there is no response to the IDMS10

  • approach the directors using the letter CT100A and questionnaire CT100B (available within CT SEES)
  • B/F 21 days and if there is no response
  • review the enforcement strategy and for cases that have not been to the DMTC
  • take SP proceedings for amounts of £1,800 or less
  • take distraint proceedings for other amounts.

Cases received via the Debt Management Telephone Centre

Cases that arrive via the DMTC will be for less than £100,000 and appear on an enforcement worklist.

  • Review the case to establish

    • the business address. If the business address is in another area (or for Scotland the registered office is in England, Wales or Northern Ireland), transfer the case.
    • the trading Status
    • the filing and payment compliance history
  • note IDMS and COTAX appropriately.

Where previous IDMS9/10 has been issued to the business address

  • take SP proceedings for amounts of £1,800 or less
  • take distraint proceedings for other amounts.

Where IDMS9/10 was not issued previously to the business address

  • re issue IDMS9/10 to the business address
  • take SP proceedings for amounts of £1,800 or less
  • take distraint proceedings for other amounts.